The real estate market in Spain has managed to overcome the consequences of the coronavirus pandemic. Both home sales and prices have already reached the level preceding the onset of the disease, according to an analysis conducted by BBVA. The company predicts that by 2035 the housing stock will grow by about 1.8 million units, which means an average increase of about 120,000 houses per year.
«Demand is now more focused on large houses or houses with open spaces, such as terraces or gardens», the report notes.
How will the demand for real estate develop in the coming years? According to BBVA Research, activity in the residential segment of the construction sector will be significant in the coming years. This will largely depend on the growth of the Spanish population. The forecasts of the National Institute of Statistics (INE) suggest growth until 2035, but much more moderate than in the first decade of the 21st century.
«If in the period from 1997 to 2012 the population grew by about 1%, then in the period from 2022 to 2035 it is expected to grow by an average of 0.14% per year», the research says. The reason is a decrease in the birth rate, an aging population and a decrease in the influx of immigrants.
Another factor to consider is the size of real estate. «It is expected that the population will continue to decline at the same rate that has been observed since 2014, which will mean 2.36 people per dwelling in 2035 compared to 2.5 today». Despite the decline in this indicator, it will remain above the European average (2.3 people in 2020).
It is worth considering that many Spaniards tend to have a second home, i.e. a place where they can spend vacations, as well as economic factors that make housing an investment alternative.