The term of home ownership in Spain is growing. The average resident of Spain has owned his real estate for almost 17 years, if you rely on the data of the Association of Real Estate Inspectors of Spain. This indicator is evidence of both negative and positive features of the Spanish real estate market.
The positive thing is that not so many people are losing their homes, despite all the instability of the country's economy in recent decades. The population has enough money to live under its own roof. The term of ownership has been growing since 2009, reaching a maximum in 2022 — 16.9 years (growth by 2.7%).
The negative is the fact that we see how the habitable dwelling of Spain is getting older and older and people do not have enough funds or opportunities to purchase a new one. The term of ownership of one object in 2009 was 7.3 years. As we can see, it has more than doubled in 13 years.
All this is not surprising, given that the decade following the global economic crisis of the late 00s was marked by excessive attention of foreign buyers and investors to Spanish housing. While the overall indicators of sales and demand in the market are growing, the number of transactions made by citizens themselves is falling.
This is due to extremely high prices, which become more and more the more foreigners arrive in the country, as well as the fact that old housing still does not allow you to get enough money for purchases on the primary market when selling.
Yes, mortgage loans have been extremely cheap throughout the last decade, the number of mortgage lenders has been growing, but still not many people are willing to take out loans even at minimal interest and pay them off for decades.
Another factor influencing the lengthening of the period of ownership of real estate and reducing the number of transactions on the market among Spanish citizens is a fundamental change in the market. After a period of violent speculation in 1997-2007, which ended with a price bubble in the market and a severe crisis, the market has changed dramatically in many aspects.
In particular, banks have become much more selective in who they are willing to give a mortgage to. And the real estate owners themselves began to look with apprehension at housing speculation. The preferred option was to hold on to the available square meters as long as possible, since real estate can become the main lifeline during a new crisis.
The market has also started to receive an increasing number of investors who consider investing in housing as a long-term investment for years to come. The last decade was marked, among other things, by an increase in investment in housing for subsequent rental — a passive income method that contrasts vividly with the method of speculative resales of the 00s.
The Association's data also show that almost all autonomous communities in Spain experienced an increase in the average period of ownership of real estate in 2022. The highest rates were found in Baskonia (24.8 years), Navarre (20.6 years), Extremadura (20 years) and Catalonia (also 20 years). Most often, people part with housing in Asturias, the Canary Islands and La Rioja - less than 14 years, although the indicator is growing. Only in Murcia, the term fell by 0.2%, to 14.7 years.
The owners of houses with a large living area hold the property the longest. The smaller the area, the lower the average period of ownership. So, with an area of 100 square meters or more, the term in Spain is 17.1 years. From 60 to 100 square meters - 17 years. An area of 40 to 60 square meters shows 16.3 years, and less than 40 square meters — 15.1 years.
It is also known that 68.3% of transactions for the sale of housing fall on real estate that has not changed owners for more than 10 years. In 2021, this share was 68.4%. Houses owned by up to 2 years account for 7.7%, from 2 to 5 years — 11.6%, and from 5 to 10 years — 12.3%.