Spain is currently experiencing a significant property boom, with buyers from all over the world choosing to invest in property in the country. In fact, property sales in December last year were close to setting a record high. This is a strong sign that the coronavirus pandemic is no longer impacting the Spanish property market, with sales figures returning to their pre-covid figures (and higher).
Here’s everything we know about the property boom, and how this might impact home owners in Spain:
Spanish Home Sales in Figures
In December 2021, there were 72,023 residential Spanish property sales across the country. That is an increase of 17% when compared to the figures for the same month in 2020. Of course, it is very difficult to compare 2021 figures to 2020 figures without considering the impact of the coronavirus pandemic, which had a negative impact on property sales not only across Spain, but across Europe. So, if we look instead to a comparison with December 2019 then we will see that actually sales in 2022 were up 26% when compared to sales in December 2019. This clearly demonstrates that Spain is currently in the middle of a post-pandemic boom of property sales, and all signs indicate that this trajectory is set to continue.
Boom After Bust
In 2007, Spanish experienced a significant economic crisis, which gripped the country and impacted negatively on the property market for years. This credit-fuelled property bubble saw people buy property they couldn’t afford, resulting in an all-time high of property sales in 2007, and the find themselves either bankrupt or in severe financial difficulty. The repercussions of this crisis were at their worst in 2013, when the market bottomed out, but sales in December 2021 were higher than they were even in the famous boom year of 2007.
Like all property markets, the Spanish property market has experienced ups and downs in recent years, with the coronavirus crisis playing no small part in this. The downturn for the Spanish property market began in 2018 and the crisis only helped it to plunge further, but the significant recovery the market has experienced in 2021 has been nothing short of extraordinary.
Spanish Property Sales By Region in December 2021
We already know that the number of property sales in December 2021 was significant, but which regions were most popular across Spain? You won’t be surprised to learn that it was the regions that are considered of interest to foreign buyers that attracted the highest sales. In the Canaries, for example, sales figures were up 44% year on year. In the Balearics this figure was a 41% increase and Andalucia saw a 29% increase in the number of property sales. Other regions that saw more modest, but still significant, increases include the Valencian region (+26%) and Murcia (+25%).
Whilst sales were up by 12% in Catalonia (the region that includes property sales for Barcelona) sales in this area were comparatively more modest.
Wondering how these figures compare to the pre-covid world? Well, if we look at 2019 figures for comparison, rather than 2020, Andalusia has seen the biggest growth in property sales (at 41%) whilst sales in the Canaries are just 3% higher than they were in 2019. What all of these figures show is that demand for Spanish property is high, particularly amongst foreign investors, and we predict it will continue to be high throughout 2022.
Are you thinking of making your lockdown dreams a reality and buying a property in Spain? Why not let our locally based property experts help you! We’re perfectly placed to find the right property for you. Get in touch with our team today.