Spain is Gearing up for a Fresh Housing Boom


FOR international housing purchases in Spain, the British are at the top of the list.

During the lockdown, many homeowners re-evaluated their property objectives and decided to relocate, changing the face of Spanish real estate. As a result, the housing industry had the largest sales in 14 years in 2021, resulting in an unanticipated real estate bubble that has put pressure on the market.

According to UCI's deputy director-general, "buyers are sticking to second-hand owing to the lack of new housing, which in recent years has not topped 100,000 units," new construction accounted for just two out of every ten transactions last year.

Despite the strong demand, prices have remained relatively consistent since the coronavirus pandemic began, with an average of 1,823 euros/m2 in 2021, representing a 3.9 percent gain.

The Balearic Islands currently have the most expensive residences in Spain (2,963 euros per m2), followed by Madrid (2,926 euros per m2), the Basque Country (2,860 euros per m2), and Catalonia (2,293 euros per m2).

Extremadura (731 euros/m2), Castilla-La Mancha (815 euros/m2), and the Region of Murcia (1,049 euros/m2), on the other hand, have the lowest rates.

The good news is that experts do not expect this situation to turn into another real estate bubble because financial institutions have continued to lend at a reasonable rate; the percentage of mortgaged homes remains at 45 percent, "a very stable figure in recent years, which highlights the significant number of operations carried out with family savings or by investors," according to experts.

The British have retaken the lead as the top property purchasers in Spain, edging out the Germans.

They prefer to buy in the Balearic and Canary Islands and the Valencian Community.

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