The Spanish Property Index has shown a significant rise in house prices during 2021.
According to Trading economies real estate in Spain has achieved residential increased by 4.43% in the last quarter of 2021 compared to the previous year 2020, as the real estate market in Spain has regained the activity it lost in 2020 due to the Corona epidemic.
In our article today, we will talk about the performance of the real estate market in Spain for 2021 and how the market is doing in the first five months of the current year 2022.
Spain real estate market 2021:
In 2021, we sold 676.775 homes were sold in Spain, an increase of 38% and 18% compared to the pandemic years 2020 and 2019, respectively. As for foreigners, last year was a record year for them, as they accounted for 16.5% of total sales, a significant increase of 52% compared to 2020.
During the previous year 2021, the coronavirus pandemic crisis began to fade away, but many people around the world have noticed a change in lifestyle.
From here, the eyes of the public began to turn towards Spain, especially the city of Marbella, Spain, where the mild climate and the Mediterranean lifestyle in it, and most importantly, the diversity of housing styles from villas, apartments and penthouses, sunny and spacious, which led to the boom in the housing sector in the region an unprecedented boom. The home sector in the region is exceptionally prosperous and unprecedented.
Comparing the first half of 2021 with the same period in 2019, the number of residential real estate sales in Marbella increased by 68%.
Speaking of Marbella, we can't forget the Costa del Sol, which has seen stronger growth than ever before. In the first eight months of 2021, 20,600 homes were sold on the Costa del Sol, registering a 40% increase over the same period in 2020.
In August 2021, 11,072 new homes with modern designs and luxury services were sold in the Costa del Sol, the region's most popular real estate market. Costa del Sol achieving the highest monthly figure since 2013.
Spain real estate market 2022:
The real estate market grew by 25% in the first quarter of 2022.
Starting in 2022 Strong growth in home sales to foreigners The number of home sales to foreigners reached 21,638 during the first quarter of the year an increase of 73% compared to the same period last year.
Domestically, demand remained strong again this year with 142,661 sales, up 22% compared to last year.
However, we see a significant increase in demand for homes from foreigners compared to moderate or reasonable growth in domestic demand.
In March of this year, Spain's real estate market experienced its highest boom since 2007, with 70,812 homes sold in that period. Sales in March were up 16% compared to last year, and 37% compared to the year before the 2019 pandemic.
Where did investors buy real estate in Spain?
According to Spanish Property Insights Only nine out of fifty destinations in Spain attract 90% of foreign demand.
Valencia is considered Valencia is the most popular region by foreign investors, accounting for 26% of the total sales and 29.019 buyers, followed by Andalusia Andalusia with 20% with 22.625 buyers, while Catalonia Catalonia accounted for 16% with 17.493 buyers.
But in Teruel Teruel for example, is the least popular province where foreign buyers make up only 0.01% of the market.
There are many reasons for buying real estate in Spain, some for the purpose of vacationing in Spain and others for the purpose of residing in Spain or for real estate investment.
Nationalities the most buying for real estate in Spain (Q1 2022 statistics):
- British nationality accounted for the largest share of the number of properties sold in Spain at 12% with 2.603.
- German nationality followed with 2,049 sales, accounting for 9.5% of the total sales.
- French nationality took third place with 7.5% with 1,525 properties.
- Moroccan nationality ranked fourth with 7.04% with 1,522 properties.
- Finally, Swedish nationality took the fifth place, accounting for 5.8% of the total number of properties sold.
U.S. citizenship accounted for less than 1% of the total, with only 223 properties.
Spain Real Estate Market Outlook 2022:
According to the Central Bank of Spain, the expected return on residential real estate in Spain for 2022 is 10%.
This percentage comes from two sources, the first is the return on rents, which is estimated at 3.7%, and the second is the return on capital, which is estimated at 6.3%.
Spain's real estate market is expected to continue to grow this year, with prices rising by 10% and sales by 15% in 2022.
