Unlike the financial crisis of 2008, the real estate sector seems to have remained immune to the consequences that the coronavirus had for many sectors of the economy.
Quarter by quarter, we can observe a general increase in prices for Spanish real estate. This is evidenced by the latest report made by the company iAhorro on the change in the cost of housing in Spain since the beginning of the pandemic. According to the analysis of prices for 1,456 objects of various real estate portals, it can be concluded that in the second quarter of 2021, prices increased by an average of 1.7% compared to the first three months of the year. In the case of housing under the age of five (new houses), the growth is up to 2.1%, while for housing over the age of five, the growth is 1.4%.
"Despite the difficulties in the real estate market, the crisis, as many expected, did not happen. The sector has survived to such an extent that in some cities we are seeing the biggest price increase in 15 months since the beginning of the pandemic," says Antonio Gagliardo, a financial expert at iAhorro.
If we take as a basis the period from the first quarter of 2020 to June 2021, the increase in real estate prices in general terms will be up to 2.3%. Prices for new housing increased by 4.1% and by 2% in the case of housing older than five years.
This can be seen in the example of cities such as Málaga, where in the second quarter of this year the highest cost of housing for the last 15 months was recorded – 1 809,3 euros per sq. m. Similarly, in Valencia, where the cost of 1 square meter is 1 514,7 euros, the highest cost was also observed.
The price increase was more noticeable in the field of new construction compared to the first quarter of 2020:
- Alicante (+26%)
- Vigo (+12%)
- Zaragoza (+10%).
In the same way, this type of real estate monopolizes the most important discounts. For example, you can see that in San Sebastián or Bilbao, the price drops by about 3%. However, Madrid (-1%) or Barcelona have remained stable since the first quarter of 2020.
"Prices are rising more strongly in Madrid than in other cities, due to the constant movement and flow of people. It was expected that after remote work and the pandemic, the drop would be more significant, because many Airbnb apartments went on the market. As supply exceeded demand, prices fell, " says Antonio Gagliardo.