The real estate sector has left behind the coronavirus crisis. Sales and purchases of real estate in June increased by 23% compared to the same period in 2019. The numbers suggest that performance was even more active than before the pandemic.
Data compiled by the Association of Property and Mercantile Registrars of Spain show that 94,330 sales were made in the sixth month of the year. For comparison: two years ago, 76,664 transactions were made, when the country was still in a normal economic cycle.
If we compare these data with the data of the previous year, the growth is 83.6%. In June 2020, when the “house arrest” imposed by the pandemic finished, there were barely 52,000 transactions in the real estate market, which was suffering from the devastating effects of the early stages of the economic crisis.
Of the total number of transactions carried out, 45,439 were directed to the purchase of private houses, which is 18.8% more compared to 2019 and by 76.7% if we consider the data for 2020.
In addition to the economic recovery, analysts from the Association of Property and Mercantile Registrars note that this noticeable growth is also marked by legislative changes that the sector underwent just two years ago. At this time, the Law regulating loan agreements for real estate came into force, which led to a slight slowdown in sector development.
Growth in mortgage loans by 23.2% compared to 2019
The sale of houses was accompanied by an increase in the number of mortgages that Spanish banks issued to meet the needs for money. In June, 47,662 property loans were registered, according to the Association of Property and Mercantile Registrars.
The volume of mortgage loans is 23.2% more than in the same period in 2019, which corresponds to an increase in transactions volume. Meanwhile, if we take the indicators for 2020, at the peak of the pandemic, then the change for the year will be 33.4%.
Loans issued for the purchase of private houses amounted to 35,532, which is 27.2% more than in 2019, when this figure exceeded 28,000. The jump compared to 2020 is 41%.