New construction projects show better results than secondary real estate. This trend may continue at least in the first half of the year. In the first quarter of 2021, property sales and purchase prices have increased by about 1% year-on-year.
In the rental market, there is an opportunity to adjust the price, which in the previous quarter decreased by more than 2% compared to the same period last year.
The pace of transactions has recovered rapidly after months of strict containment, although the first data for 2021 reflects a more restrained prospects.
The onset of the crisis in the health sector, which led to the suspension of all real estate transactions for several months in 2020, as well as changes in the tourism sector, had a great impact on the evolution of the construction sector last year, reflecting fluctuations and statistics. They are very different from the figures that the sector had been recording earlier.
The experts of the Instituto de Valoraciones have analyzed the behavior and development of the real estate market from the beginning of the pandemic to the present today. They showed the impact it had on the sector, as well as trends and fluctuations that can be expected in the short term. The number of permits for new buildings is showing the signs of recovery, although the dynamics in the coming months will partly depend on the financing conditions offered by the financial sector.
The pandemic is reducing rental prices, and this trend may continue at least in the short term.
In the rental market, the trend is somewhat different from the buy-to-let market. In the first quarter of 2021, rental prices recorded an average price per square meter of 10.9 euros per month. It is about 2.0% less than in the same period last year. Since the third quarter of 2020, a decrease in annual price fluctuations has been decreasing in this market with results that have reached negative variations in the first months of 2021. Despite expectations of a recovery with the start of the vaccination campaign, the rhythms of this and other factors have led to the market continuing to feel the impact of the outflow of population from cities and the slow pace of tourism development. Thus, taking this trend into account, it is likely that the price will continue to adjust in the coming months.