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Spanish property sales pick up pace

Wondering what’s happening with the real estate market in Spain? Read on to learn about the latest trends in residential property sales in Spain.

Strong growth in house sales in Spain

On average, 1,675 homes were sold each day in Spain between July and September.

At a total of 154,155, the number of residential property sales registered in the third quarter of 2021 was not only 12.4% above the previous quarter, it was the highest total for any quarter in the last 13 years. Furthermore, it brought the total number of homes sold in Spain in the 12 months to September to 534,386 – the highest such total seen since 2008.

Existing homes accounted for the bulk (81%) of sales registered in the third quarter with a total up 12.5% on Q2-21 to 124,722. And sales of new homes, accounting for the remaining 29,433 sales, came in 11.6% higher. These are among the figures in the latest data from the Spanish Land Registry (Registradores de España). 

It’s no surprise, then, that Spanish property solicitors are being kept busy. But what’s causing this increase in property sales in Spain? 

Media reports say experts tend to agree that three main factors are at play. The first is that after the lockdowns and spending so much time at home, many residents in Spain dream of living in a bigger, better home, ideally with a patio or garden. Secondly, many of those who kept their jobs despite the pandemic were able to save money during the lockdowns and other restrictions and can now afford a big purchase. And the third factor? Interest rates remain low. In terms of foreigners – who once more account for over one in ten house purchases in Spain – the lifting of pandemic restrictions on movement is a key factor.

Average house prices in Spain rose again in the 3rd quarter of 2021

At €1,843, the average price per square metre of housing in Spain between July and September this year was 2% above that for the previous quarter. And the average of €1,789 for the 12 months to the end of September 2021, was marginally (1.1%) above that for the same period the previous year, the land registry data also shows. 

The highest average prices per square metre in the latest quarter were in the Basque Country (€2,900), Madrid (€2,888), the Balearic Islands (€2,862) and Catalonia (€2,275), while the lowest were recorded in Extremadura (€749) and Castilla La Mancha (€843), the registry said in a November press release.

Germans are now buying more housing in Spain than the Brits

For the first time since the land registry started publishing statistics on foreigners buying property in Spain in 2006, the British do not lead the list. In what many believe is largely due to Brexit, the Brits rank 2nd and the Germans now rank 1st. Of the 16,100 property purchases by foreigners in Spain between July and September – a total 18% higher than that of Q2 – Germans accounted for 10.4%, the British 9.9%, French 7.8%, Moroccans 6.5%, Belgians 5.6% and Romanians 5.3%.

Where are foreigners buying property in Spain?

Of all the property purchases by foreigners in the third quarter, the Balearic Islands were the most popular, claiming a 34.3% share, followed by the Canary Islands (23.6%), the Valencian Community (19.7%), Murcia (17.4%), Andalusia (11.4%) and Catalonia (11%). 

Sources:

Spanish Land Registry press release, November, 2021
Spanish Land Registry report for third quarter 2021
Spanish TV channel report

Number of house sales registered in the third quarter of 2021 (Spanish Land Registry)

Quarterly change in the number of residential property sales in Spain (Spanish Land Registry)

Average prices per square metre of housing in Spain Number of house sales registered in the third quarter of 2021 (Spanish Land Registry)

Source of graphics:

Spanish Land Registry report, 3Q21

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