The COVID-19 crisis has shaken the Spanish real estate market, changing the housing construction paradigm and re-evaluating neighborhoods and houses, such as those located on the outskirts of urban centers and on second lines, that until now have not been particularly attractive or seen as vacation opportunities. In this context of change, the real estate sector is confidently resisting the pandemic. In fact, the predicted 7% drop in house prices in Spain will not happen this year. These are figures from the Spanish Association of Personal Property Buyers (AEPSI). There is one segment that has remained stable throughout the crisis and that reflects the economic stability of its demand: new construction. In this sense, the prices of new buildings have been maintained and even increased since 2020, with the result that the average price per square meter in major cities such as Madrid and Barcelona is about 4,000 and 4,400 euros, respectively. In addition, the metropolitan areas of major Spanish capitals have a significant part of new housing projects due to the greater availability of ready-made land for builders at competitive prices.
"This trend can be explained by the ability to adapt the supply of new construction to demand and the characteristics of these facilities that better meet the needs of the post-pandemic society in a large open space and square meters, which are not available in the apartment buildings traditionally located in the city centers," explains Iñaki Unsain, personal buyer and president of AEPSI.
The evolution of secondary housing occurred in different ways. According to AEPSI, this segment has been more affected by the effects of the crisis. In major Spanish cities such as Madrid, Barcelona, Valencia, Seville and Malaga, prices fell by 7%. Migration to the outskirts of cities and the need for many owners for liquidity as a result of a sharp drop in tourism and various ERES and ERTES (temporary dismissal procedure) processes are cited as possible reasons.