Spanish mortgage market sees record growth amid overall property market recovery

Spanish mortgage market sees record growth amid overall property market recovery

In Spain, the number of mortgages soared by 41.2% in June compared to the same month last year, according to the data unveiled by real estate portals Pisos.com, Idealista and Fotocasa.

Pisos research director, Ferrand Font, said the June home mortgage data recorded in land registries confirm a return to pre-pandemic levels, so he expects a good end to this year for the real estate sector.

Moreover, Font was struck by the situation in the mortgage market, and also expressed doubt that this is a new trend.

In contrast, the head of mortgage lending at Idealista, Juan Villene, argues that the June data is a continuation of the trend seen in previous months with very high volumes of new mortgages. Villene also stated that this is "a good moment in the real estate market and changes in mortgages are associated with low interest rates."

On the other hand, director of research and spokesperson at Fotocasa, Maria Matos, believes that although annual changes represent the biggest increase since the Covid-19 outbreak in Spain, extremely high growth levels are due to the fact that the comparison is made with data for June 2020, when there was "economic and social paralysis".

Matos acknowledged that "the impact of the pandemic has contributed to the growth in mortgage approvals, pushing the number of transactions to levels we have not seen in ten years. Spanish people are again very active, which means that the sector has recovered at a very good pace."

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