Housing is reactivated

Housing is reactivated

In Spain, housing is reactivated after having gone through very difficult times due to the pandemic. In March 2020, the coronavirus nearly paralyzed real estate deals in our country. Nonetheless, a year and a half later we can speak about a clear recovery especially if we take into account the facts and figures shown by the Consejo General del Notariado referring to housing sales this last month of June. That month, a total number of 64.877 houses were sold being the highest figure of the month of June in the last eleven years. If we compare these facts and figures with those of June 2020, there is a scandalous difference as there has been a 71% increase in sales. However, in June 2020, we were in the middle of a state of alarm and therefore commercial activity was paralyzed and we were trying to assimilate the consequences that this unknown virus, which had just appeared in our lives, could have. So it is not a very useful comparison but what can be very useful indeed is if we compare these figures with June 2019, before the coronavirus appeared. In June 2019, the number of deals increased 41% and this helps us realize that housing in Spain has strongly reactivated. But which are the factors that have led to this growth? Let us take a look at them.

La vivienda se reactiva
Housing is reactivated in Spain and going through the best month of June in eleven years

AN OPTIMAL TIME FOR OUR REAL ESTATE

There are two circumstances that have been crucial to making the number of housing deals so positive this last month of June: these are the low interest rates as well as the savings made by investors during the pandemic. Spanish financial entities have signed mortgages non-stop during this last month of June (it is calculated that in June the number of mortgage loans increased 87% year-on-year), this is why some analysts consider that our real estate system is going through an optimal time. In this blog, we wrote an article about the good forecasts for housing this summer. Months before, experts already showed a moderate optimism regarding the recovery of our real estate sector. However, we must state that the forecasts have surpassed all expectations. We can point out that the conviction that buyers have about having passed the worst part of the pandemic together with the savings capacity we have mentioned, as well as the good conditions offered today by the financial market, have led to the necessary impulse that many Spanish people needed in order to invest in housing. On the other hand, the Spanish economy is improving significantly (as the GDP facts and figures show in 2021 as well as the forecasts for 2022), a fact which contributes to generating real estate deals.

Housing is reactivated
The capacity to save has allowed many Spanish people to be able to invest in housing

DETACHED HOUSES IN THE LEAD

The most significant and highest increase that took place corresponded to detached houses (an increase of more than 78% and 16.141 housing sales), whereas the sales of flats grew 69% and 48.736 were sold. If we take a look at the autonomous communities then the greatest increase in housing deals took place in the Canary Islands (116,7%), followed by the Community of Valencia (105,8%) and then Cantabria (103,1%). The deals in Catalonia increased 77,4% whereas in Madrid they reached 63,3%. Nevertheless, experts believe that we should differenciate between two speeds which mark the main differences being, on the one hand, the large capital cities and on the other hand, the coastal areas.

Pictures: freepik

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