The Spanish real estate market appears to be regaining its health and returning to pre-covid levels since the beginning of 2022. According to the National Institute of Statistics, property sales in 2021 were the greatest in the past 14 years. In the year 2021, Forbes predicts that it will continue to develop at a rapid rate, avoiding real estate bubbles, which is excellent news. There never has been a better time to buy or sell property across Spain.
To gain a clear sense of the important Spanish real estate news and trends for 2022, please continue reading this article:
Buyers from abroad are making a comeback.
Many agents assert that export sales have returned to levels seen before to the outbreak. The following are some eye-opening facts about international transactions:
In the second half of 2021, there were 63,934 property sales, a 49.1 percent increase over the second half of 2020.
Around one-eighth of all real estate transactions involved a buyer from outside of the United States.
In overseas sales, prices reached a record average of 2,500 euros/m2.
Since 2021, the Balearic Islands (81 percent), Canary Islands (57 percent), Andalusia (55 percent), Cantabria (50 percent) and Valencian Community (50 percent) have had the most international sales (44 percent ).
Spain’s real estate market appears to be dominated by British and German nationals.
Demand from domestic purchasers is really high.
Additionally, Spain’s real estate market was more active than projected from 2020 to 2022, in spite of the pandemic and deteriorating of international ties.
However, it appears that the Spanish populace is now actively searching for what they truly desire. Moreover, it appears that they have more money to spend.
Spaniards have a tendency to save a lot of money.
If you’re compelled to stay at home for whatever reason, you’ll save money since you won’t have to go out and buy things. Spain is known for its large social life, but many pubs and restaurants were closed and customers were afraid of exposing themselves to disease-infected people.
After a long period of stagnation, a large number of purchasers from around the country are now ready to put their funds into better real estate now that the dust has settled and business has resumed. Savings in Spain have risen to 75,000 million euros, according to Engels and Volkers.
A new low in financing expenses has been reached.
Since financing is at an all-time high, homebuyers have being encouraged to take advantage of their savings. Financing alternatives are at a historic low, with fixed mortgage rates at their lowest. Despite this, banks are becoming more selective in their loan approvals.
People in Spain are searching for better places to live.
After a period of confinement and social limitations, the Spanish populace has a greater need for larger homes, particularly those with outside areas.
More and more people are choosing to live outside the city centre in locations like Madrid in order to enjoy a higher quality of life, as well as more room for their families to spread out throughout. According to Emiliano Bermdez, Donpiso’s deputy general manager, people used to hunt for properties in cheaper locations, but now they’re looking for properties with greater qualities.
Second houses are increasingly in demand.
According to real estate specialists, the demand for second houses has risen by 50% since mid-February, and this trend is expected to continue in 2022.
As the tourist sector reopens and the general public begins to travel again, this practise has become more prevalent around the coasts of the United States.
The Costa Blanca region of Spain appears to be the most popular destination for persons looking for second homes, and the typical buyer is between the ages of 55 and 65, looking for 30 percent to 40 percent of the purchase price to come from a mortgage.
Among international buyers of second homes in Spain, UK nationals are the most common, with a preference for the Costa del Sol, while Germans and French are more likely to choose Andalusia and Catalonia, respectively.
In demand are commercial and office spaces.
Due to the country’s economic recovery and the consequent increase in demand for retail space, numerous companies, particularly restaurants but also enterprises in general, have reopened in large numbers.
As a result, demand for office space has risen as more people return to work in the office on a partially or full time basis. There is a growing need for improved workplaces.
There is a huge demand for newly constructed real estate, which is driving up costs.
Spain’s new building prices and demand are both rising rapidly. Since there’s a rising imbalance between supply and demand, this is the fundamental reason
As of 2022, there would only be an anticipated 145,000 new houses created, which is a far cry from the need for new construction. It’s one of the most challenging issues facing Spanish real estate today, according to Gonzalo Bernandos, the master’s programme director at the University of Barcelona.
The following factors appear to be driving up demand for newly constructed homes:
- Many Spaniards began searching for better accommodations as a result of the harsh captivity.
- New development draws buyers because of its location. There are large green spaces outside of the city centre in Madrid and Barcelona where it is being created.
- Solar panels and radiant floor heating are standard features in many new houses, making it considerably easier to reduce your electricity expenditures.
- Floors, walls, and other fixtures in your home may be customised to your liking.
- In large cities, prices are rising quickly.
- In several major cities, such as Madrid, prices rose by double digits in 2021. According to Engel & Volkers, the average price per square metre of the residences they sold in the capital city last year increased by 13%.
- Furthermore, rental prices for non-residents in major cities have grown by 40 percent since the beginning of 2013.
What impact the Ukraine war will have on Spanish real estate
After Russia’s sanctions against Ukraine, many real estate specialists believe that demand for residential properties is likely to decline.
Real estate prices are expected to stabilise in the next years, reducing the risk of a bubble in the market. If inflation returns to its normal level, a slower rise in prices and sales, coupled with a higher rise in interest rates, as suggested by the European Central Bank, will result in a longer period of expansion, according to Bernardos.
