The secondary market of Spain accounts for 13% of all sales in the country: the coast and the province are in the spotlight

The secondary market of Spain accounts for 13% of all sales in the country: the coast and the province are in the spotlight

The secondary housing market in Spain is thriving after the end of the acute phase of the COVID-19 pandemic. The activity of the domestic buyer, the return of foreigners, the investors' attempts to find a safe haven — there are plenty of reasons for growth.

Today, in the third quarter of 2022, this segment of the Spanish residential real estate market accounts for 13% of all sales, and this is the highest figure since 2017. Thus, since the beginning of the pandemic, the demand for buying a second home has increased by 44%, according to a study by the Fotocasa real estate portal "Second Home Buyer Profile".

The autonomous communities of Andalusia and Valencia are the main locations. On the other hand, Catalonia, another market leader, shows a decrease in the share of secondary housing by 6% in 2022, which is below the 2020 level. Madrid also lost ground, dropping to 19% from 21% in 2020.

María Matos, Director of Fotocasa, points out: "Citizens' preferences and needs for housing have changed to improve their living conditions by purchasing new housing adapted to these needs. But we observe strong territorial differences. Catalonia and Madrid are changing, giving way to the growing communities of Andalusia and Valencia."

Matos also stressed that although, the labor market is reducing the number of remote workers, this does not affect the national demand — the demand for spacious housing and housing as a workplace. People are still looking for a second home, they need a safe haven in the current economic uncertainty. Moreover, moving away from remote employment is associated with various mixed employment schemes that still require people to have a work-adapted home space.

In addition, buyers have long craved housing with access to large open spaces — there is fatigue from isolation and quarantine restrictions during the pandemic, as well as the lack of social interactions. Attention is drawn to houses with gardens, balconies, terraces, swimming pools, as well as houses located not far from busy public spaces — parks, walking areas and so on.

However, real estate with open spaces in large cities is associated with high prices. Consequently, consumer demand migrates to peripheral areas, suburbs, provinces and the coast. From an investment point of view, the province and the coast are also extremely attractive. These are promising areas that will become good insurance for investors.

In the current situation, about 42% of real estate portals in Spain believe that the number of buyers of second homes in Spain will increase significantly in the third quarter of this year. The 11th issue of the analysis of the Spanish real estate market “Market Excitement from Real Estate Experts” confirms this information. The Real Estate Credit Union of Spain (UCI) and its professional development department "SIRA" regularly conduct this survey.

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