In Spain, the real estate market is booming again: why are so many new properties being bought?

Today, as many properties are being bought and sold in Spain as in the years before the recession. The real estate sector is now at a level that has not been seen since the great financial crisis. 1,780 properties are sold daily, which is a historic high since the boom in the real estate market 13 years ago. In September 2021, 53,410 housing purchase and sale transactions were made in Spain.

This level has not been reached since April 2008 before the real estate bubble burst and the country entered a global recession. The economic crisis hit the sector hard and it took years to recover. When the revival began, COVID-19 appeared, and the market collapsed again.

However, after several months of restrictions, the trend became obvious. The demand rose to a level that had not been observed for 13 years. According to experts, there are three reasons for this recovery.

First, after a long and forced stay at home, many people are thinking about moving to more comfortable real estate: more spacious, more practical and, if possible, with a terrace or garden.

Second, many of those locals who did not lose their jobs due to the health crisis were able to save enough money during the restrictions imposed by the government. Nowadays, by reducing their daily expenses and increasing their savings, they can afford a large purchase.

Third, the interest rates are still low, that makes the purchase of real estate on credit profitable.