Secondary housing is reliability and protection from inflation

Secondary housing is reliability and protection from inflation

Secondary housing is going through a favorable period. Lots of buyers are increasingly choosing it as an alternative to new construction. High prices and delays in construction are some of the disadvantages that force users to make a choice in favor of secondary housing. This is evidenced by the data of the National Institute of Statistics, which registered a historic increase in the number of real estate sales and purchases in this sector.

In fact, 79.5% of properties in respect of which purchase and sale transactions were executed in September 2021 were projects of the secondary market, while only 20.5% were represented by new buildings. In this context, Francisco Sierra, Managing Director of Casavo in Spain, explains that «the obvious preference for second homes allows us to clarify the growth in this segment of the real estate market».

On the other hand, the increase in the price of raw materials and some consumer goods as a result of the glut of the global market has led to uncertainty in some cases. This led to an increase in prices in all sectors and even to signs of inflation, which also reached the real estate sector. However, it does not negate the economic improvement that Spain is experiencing after the pandemic.

In fact, the high demand and low supply in the real estate market that currently exist in Spain cause an increase in prices for properties, especially for new housing. The prices are rising due to the increase in the cost of raw materials. Therefore, it is logical to assume that buyers prefer secondary housing for the uncertainty in this sector and the high price of new buildings. In fact, according to the latest Fotocasa reports, 63% of Spaniards exclude the purchase of new buildings at all.

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