The sale of houses grew by 24.9% in September. This increase in demand helped this segment to maintain its price while apartments so a drop of 5.6% in Spain.
The Covid-19 pandemic has caused an understandable shift in in peoples priorities when buying a home in Spain. Many towns and cities have seen buyers shifting from the centers to more suburban locations to benefit from larger properties. Which as with most suburban locations, consists of detached and semi detached houses. This increase in demand for these types of properties is such that they are slowing down the drop in prices observed throughout the market.
What many estates agents have been saying for the last few months has now been confirmed by the General Council of Notaries. According to figures for September, the sale of Spanish houses grew by 24.9% year-on-year, compared to the 5.4% registered by the sale of all residential properties (45,583 transactions).
Detached and semi-detached are characterized by having larger spaces inside and open spaces outside, such as gardens and terraces. In addition, they are usually located in areas far from large agglomerations and all this is precisely in line with the demand unleashed as a result of the pandemic. The rise of teleworking and restrictions on mobility have caused a boom in the search for this type of housing and that, in turn, has been felt in the prices.
The fall in the price of single-family homes slowed to 3.4%, compared to the 5.6% decrease registered by Spanish apartments.
It is also worth pointing out that houses prices should see little further decreases due to the higher demand. Currently if priced correctly Costa del Sol houses for sale are selling relatively quickly, considering the situation.
NEW VS RESALE PROPERTIES
The data of the General Council of Notaries also showed the preference of the new developments over resale properties. Spanish apartments for sale showed a year-on-year decrease of 0.2%. This decrease in transactions was exclusively due to the decrease in the sale of resale apartments (-3.5% year-on-year) since the sale of new apartments increased to 30.2% year-on-year.[/caption]
The price per square meter of apartments in Spain fell by 5.8%. Within these, the price of resale apartments stood at 1,475 euros (-9.4% year-on-year) and that of new apartments at 2,250 euros (+ 3.7% year-on-year).
For its part, the average price of homes yielded 7% in the ninth month of the year and mortgage loans for the acquisition of a home increased by 8.3%, according to data from the General Council of Notaries.
MORTGAGES GO UP
The mortgage market also showed signs in September of recovering after the stoppage caused by the coronavirus. The number of new mortgage loans in September was 29,605, which represents an increase of 5.5% year-on-year. The average amount of these loans was 152,515 euros, thus reflecting a fall of 13% year-on-year.
For their part, mortgage loans for the acquisition of a residential properties increased 7.4% year-on-year in September (24,436 loans). This was due, on the one hand, to the increase in loans for the acquisition of a home (+ 8.3%) and, on the other hand, to the decrease in those for the acquisition of other types of properties (-5.6%).
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Andrew Bellés
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