August 13, 2021

Great optimism in the housing market

The real estate sector in Spain has not only survived the crisis caused by Covid-19, but has recovered so strongly that pre-pandemic sales levels have already been exceeded.

In June, a total of 48.200 property sales were registered in Spain. This is the best figure in two years and a clear proof that more homes are being sold now than before the crisis. Among the reasons are low interest rates and the savings that have been generated during the pandemic, which has led to Spanish people looking for a new home like never before.

The figures, which were presented on 5 August, come from the statistical institute INE and show that sales in June increased by 73.5 per cent compared to the same month last year. In June 2020, however, operations were still relatively stagnant and the notaries in principle only dealt with operations of an urgent nature. But the number of operations in June this year also exceeds the number in June 2019 (a total of 41,400).

June is the third month this year whose figures exceed 2019 figures, after March and April. That is, during these months, more properties changed owners than in the same month two years ago. This year's June is the best month since May 2019 when 48.300 sales were closed. Almost 50.000 sales per month means that the market is approaching the levels of the real estate boom in 2008. The increase applies to both new production and resale properties.

According to statistics from the notaries, however, there are as many as just over 65.000 operations that were signed in June. This would make June the best month in eleven years. The basis for the statistics from INE comes from the property register, which is lagging behind due to the administration.