A SHARP rise in the number of fixed-rate mortgages in Spain has been reported in the past two years – and they now account for 43% of every new loan taken out.
Homebuying fever rages: Property sales soar 'beyond pre-pandemic levels'
20/10/2021
'ROCKETING' house sales in Spain have reached levels not seen in over a decade, according to recently-released statistics – and although the rental market is said to be particularly buoyant at the moment, buyers comfortably exceed would-be tenants.
Industry reports, based upon data from the National Institute of Statistics (INE), say existing residents in Spain only seeking to buy and not open to renting total 44% , compared with those who merely want to rent and are not looking to purchase a home, at 43%, and the remaining 13% are willing to entertain either depending upon the pros and cons for their individual situations.
Back in February this year, around 40% were focused exclusively on buying, and 50% solely on renting.
Of the entire adult population in Spain, during August, 34% had carried out a property transaction – buying, selling or renting – compared with 28% in February and 27% in August 2020.
The previous two Februarys – 2019 and 2020 – saw 28% and 31% of Spain's over-18s making a move, and in the last August before the pandemic, also a record year for tourism numbers, a total of 35% of adults in the country bought, sold or rented a home.
This means 2021 has been similar in numbers to 2019, the final year of 'normal life' before Covid-19 hit Europe.
Swift recovery from Covid-linked decline
Analysis of the official figures shows that it has taken less than six months for the housing market to recover since the worst weeks of the pandemic, and only just over a year since the end of the total national lockdown when 'essential errands' in one's immediate neighbourhood with no pit-stops or delays were the only excuse for being outside the home, and even five minutes on the front doorstep to 'catch some air' could be subject to a fine.
Also, based upon a combination of the INE data and enquiries at estate agencies on- and off-line, the year is showing a 'latent urge' on the part of people living in Spain to purchase new homes.
This 'urge' is at a level 'not seen in over 10 years, never mind since before Covid', according to property market analysts.
As has already been established in the past 18 months, the effects of lockdowns, restrictions and a heightened risk, perceived or actual, of one's own mortality, together with forced time away from family and friends not in the same household, having to work from home for, perhaps, the first time in one's career, and spending more time in the company of the immediate family unit – pets included – have been psychological as well as financial: Those on average or mid-range incomes, unable to spend money on non-essentials due to closures and confinements, built up a buffer-zone, and people all across the earnings scale began to question whether where they lived was where they actually wanted to be.
Predictably, this has led to estate agencies reporting a rise in demand for more spacious property, with at least a balcony or terrace if not a private garden with a pool, outside of large cities and in quieter, village or country locations, or near the coast, and in particular, homes with much more natural light; many sought new homes at a comfortable distance from any neighbours, whilst others wanted to relocate to live in the thick of a community so they could feel less isolated.
For those already content with where they lived, property market analysts say the increased levels of savings in middle-income earners have meant a rising number seeking to invest this extra cash, hunting out bargains either as a second home, to rent out, or simply to keep as a future pension fund.
Up by a third since before the pandemic
Recently, INE figures and data gathered by the College of Registrars showed that August 2021 had been a bumper month, with total home sales and purchases having soared by 44.2% on those of the same month in 2020.
Then, a total of 63,771 homes were bought and sold, compared with 91,974 in August 2021, or a rise of 28,203 year on year.
This has not just been a case of reactivation of the market post-pandemic, apparently: In August 2019, a total of 69,216 homes were bought and sold, only marginally higher than in the following 'Covid year', whilst the same month in 2021 saw a spike of 32.9%, or nearly a third, in comparison.
Typical buyer profile
Personal characteristics among buyers registered during this year's surge show that women are more likely to purchase property at the moment than men – 55% of them, compared with 45% - and that younger adults are tending to be the largest homebuying group.
Just over a quarter, or 26%, of the total as at the end of the third quarter of 2021 was aged between 25 and 34, although the mean average age of a buyer was around 40.
They were not all, necessarily, very wealthy – in fact, nearly one in five, or 19%, are described as low-income or lower-middle income earners.
The majority continue to be mid-to-high-end earners – 46% - and those whose earnings fall exactly in the mid-range totalled 35%.
Showing that younger buyers are on the rise – and borne out by the fact that the under-35s are the largest group among home purchasers – INE figures show that 26% of those who signed for a new residential property this summer had been living with their parents or guardians, meaning that for many, the house or flat in question was their first home.
The split across civil status and previous living arrangements was relatively uniform – 23% of buyers lived with a partner or spouse but without either dependant or adult children in their household, whilst 25% lived with a partner or spouse and children.
Among the remaining 26%, a mix of sole occupants – tenants, or homeowners seeking a change – one-parent families or households with one adult 'head' and one or more dependent adults, such as elderly or disabled relatives, and people living in a rented house-share with friends made up the total.
Where are the buyers?
Everywhere, according to the INE and College of Registrars, although more so in Spain's more densely-populated areas, such as coastal regions or those with a very large city or several large towns in them, and two regions in particular stand out: The Comunidad Valenciana and Catalunya.
After a year of consecutive falls in home sales and purchases, the three provinces that make up the Mediterranean region of the Comunidad Valenciana – Castellón, Valencia and Alicante – was slow to recover and its housing market did not start to pick up until later than most of the rest of Spain.
But when it finally did so, it came back with a vengeance: February 2021 saw barely 25% of the region's adult population 'participating in the housing market', as reports on the statistics define this activity, whilst by September 2021, just last month, the number had soared to over 34%, or more than one in three residents.
This shows a recovery, rather than a boom: By the end of the last 'normal' month for business before the pandemic, February 2020, a total of 35% of the adult population in the Comunidad Valenciana had 'participated in the housing market', meaning the most recent statistics show a return to typical levels.
That said, it could be that this 'recovery' is merely the start, given that in other coastal regions with a similar property-type panorama, lifestyle, facilities, location and population density, buying and selling now exceeds levels seen prior to the international Covid-19 outbreak.
Catalunya is a case in point – from 29% of adults in the provinces of Barcelona, Girona, Tarragona and Lleida having 'participated in the housing market' in February 2020, before the pandemic, the number shot up to 36% by August 2021.
Figures for the Balearic and Canary Islands and for Murcia, similarly key coastal enclaves, have not been especially highlighted, but reports state that interest in buying and selling has at least remained the same in the last six months, or risen slightly, and earlier statistics from August 2021 showed that the only regions where a slight decline had been reported were land-locked, rural and less-densely populated.
Andalucía's buyers have only gone up by one percentage point between February and August inclusive this year, but were already high in comparison to other built-up coastal parts, with 31% of adult residents 'participating in the housing market' in the second month of 2021 and 32% by the end of summer.
The Basque Country, often overlooked by those seeking homes within comfortable distance of a beach or right on the shores, is, nevertheless, one of Spain's more populous and wealthy regions, with good connections and very geared up to national and international tourism – this shows in the increase in property market 'participation', which rose from 21% in February 2021 to 26% in August.
Despite being home to the European Union's second-largest capital city, and even though the 'pandemic property market' has seen an exodus from major metropolitan areas towards coast and country, the Greater Madrid region is not just a giant urban sprawl – outside the immediate boundaries of the capital and its outer suburbs, large swathes of countryside, mountains and small villages, with nature reserves, National Parks, ski resorts and inland 'river beaches' mean that, other than an actual coastline, Madrid is eclectic enough to suit any taste in lifestyle, whilst being well-connected by air, road and rail to the rest of the country and the world and even remote rural areas are within easy reach of all necessary facilities.
This means that although a rise in home-working is driving buyers out of the heaving metropolis with its higher prices, the Madrid region has seen a healthy hike in home sales and purchases this year – from 32% in February to 36% in August.
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'ROCKETING' house sales in Spain have reached levels not seen in over a decade, according to recently-released statistics – and although the rental market is said to be particularly buoyant at the moment, buyers comfortably exceed would-be tenants.
Industry reports, based upon data from the National Institute of Statistics (INE), say existing residents in Spain only seeking to buy and not open to renting total 44% , compared with those who merely want to rent and are not looking to purchase a home, at 43%, and the remaining 13% are willing to entertain either depending upon the pros and cons for their individual situations.
Back in February this year, around 40% were focused exclusively on buying, and 50% solely on renting.
Of the entire adult population in Spain, during August, 34% had carried out a property transaction – buying, selling or renting – compared with 28% in February and 27% in August 2020.
The previous two Februarys – 2019 and 2020 – saw 28% and 31% of Spain's over-18s making a move, and in the last August before the pandemic, also a record year for tourism numbers, a total of 35% of adults in the country bought, sold or rented a home.
This means 2021 has been similar in numbers to 2019, the final year of 'normal life' before Covid-19 hit Europe.
Swift recovery from Covid-linked decline
Analysis of the official figures shows that it has taken less than six months for the housing market to recover since the worst weeks of the pandemic, and only just over a year since the end of the total national lockdown when 'essential errands' in one's immediate neighbourhood with no pit-stops or delays were the only excuse for being outside the home, and even five minutes on the front doorstep to 'catch some air' could be subject to a fine.
Also, based upon a combination of the INE data and enquiries at estate agencies on- and off-line, the year is showing a 'latent urge' on the part of people living in Spain to purchase new homes.
This 'urge' is at a level 'not seen in over 10 years, never mind since before Covid', according to property market analysts.
As has already been established in the past 18 months, the effects of lockdowns, restrictions and a heightened risk, perceived or actual, of one's own mortality, together with forced time away from family and friends not in the same household, having to work from home for, perhaps, the first time in one's career, and spending more time in the company of the immediate family unit – pets included – have been psychological as well as financial: Those on average or mid-range incomes, unable to spend money on non-essentials due to closures and confinements, built up a buffer-zone, and people all across the earnings scale began to question whether where they lived was where they actually wanted to be.
Predictably, this has led to estate agencies reporting a rise in demand for more spacious property, with at least a balcony or terrace if not a private garden with a pool, outside of large cities and in quieter, village or country locations, or near the coast, and in particular, homes with much more natural light; many sought new homes at a comfortable distance from any neighbours, whilst others wanted to relocate to live in the thick of a community so they could feel less isolated.
For those already content with where they lived, property market analysts say the increased levels of savings in middle-income earners have meant a rising number seeking to invest this extra cash, hunting out bargains either as a second home, to rent out, or simply to keep as a future pension fund.
Up by a third since before the pandemic
Recently, INE figures and data gathered by the College of Registrars showed that August 2021 had been a bumper month, with total home sales and purchases having soared by 44.2% on those of the same month in 2020.
Then, a total of 63,771 homes were bought and sold, compared with 91,974 in August 2021, or a rise of 28,203 year on year.
This has not just been a case of reactivation of the market post-pandemic, apparently: In August 2019, a total of 69,216 homes were bought and sold, only marginally higher than in the following 'Covid year', whilst the same month in 2021 saw a spike of 32.9%, or nearly a third, in comparison.
Typical buyer profile
Personal characteristics among buyers registered during this year's surge show that women are more likely to purchase property at the moment than men – 55% of them, compared with 45% - and that younger adults are tending to be the largest homebuying group.
Just over a quarter, or 26%, of the total as at the end of the third quarter of 2021 was aged between 25 and 34, although the mean average age of a buyer was around 40.
They were not all, necessarily, very wealthy – in fact, nearly one in five, or 19%, are described as low-income or lower-middle income earners.
The majority continue to be mid-to-high-end earners – 46% - and those whose earnings fall exactly in the mid-range totalled 35%.
Showing that younger buyers are on the rise – and borne out by the fact that the under-35s are the largest group among home purchasers – INE figures show that 26% of those who signed for a new residential property this summer had been living with their parents or guardians, meaning that for many, the house or flat in question was their first home.
The split across civil status and previous living arrangements was relatively uniform – 23% of buyers lived with a partner or spouse but without either dependant or adult children in their household, whilst 25% lived with a partner or spouse and children.
Among the remaining 26%, a mix of sole occupants – tenants, or homeowners seeking a change – one-parent families or households with one adult 'head' and one or more dependent adults, such as elderly or disabled relatives, and people living in a rented house-share with friends made up the total.
Where are the buyers?
Everywhere, according to the INE and College of Registrars, although more so in Spain's more densely-populated areas, such as coastal regions or those with a very large city or several large towns in them, and two regions in particular stand out: The Comunidad Valenciana and Catalunya.
After a year of consecutive falls in home sales and purchases, the three provinces that make up the Mediterranean region of the Comunidad Valenciana – Castellón, Valencia and Alicante – was slow to recover and its housing market did not start to pick up until later than most of the rest of Spain.
But when it finally did so, it came back with a vengeance: February 2021 saw barely 25% of the region's adult population 'participating in the housing market', as reports on the statistics define this activity, whilst by September 2021, just last month, the number had soared to over 34%, or more than one in three residents.
This shows a recovery, rather than a boom: By the end of the last 'normal' month for business before the pandemic, February 2020, a total of 35% of the adult population in the Comunidad Valenciana had 'participated in the housing market', meaning the most recent statistics show a return to typical levels.
That said, it could be that this 'recovery' is merely the start, given that in other coastal regions with a similar property-type panorama, lifestyle, facilities, location and population density, buying and selling now exceeds levels seen prior to the international Covid-19 outbreak.
Catalunya is a case in point – from 29% of adults in the provinces of Barcelona, Girona, Tarragona and Lleida having 'participated in the housing market' in February 2020, before the pandemic, the number shot up to 36% by August 2021.
Figures for the Balearic and Canary Islands and for Murcia, similarly key coastal enclaves, have not been especially highlighted, but reports state that interest in buying and selling has at least remained the same in the last six months, or risen slightly, and earlier statistics from August 2021 showed that the only regions where a slight decline had been reported were land-locked, rural and less-densely populated.
Andalucía's buyers have only gone up by one percentage point between February and August inclusive this year, but were already high in comparison to other built-up coastal parts, with 31% of adult residents 'participating in the housing market' in the second month of 2021 and 32% by the end of summer.
The Basque Country, often overlooked by those seeking homes within comfortable distance of a beach or right on the shores, is, nevertheless, one of Spain's more populous and wealthy regions, with good connections and very geared up to national and international tourism – this shows in the increase in property market 'participation', which rose from 21% in February 2021 to 26% in August.
Despite being home to the European Union's second-largest capital city, and even though the 'pandemic property market' has seen an exodus from major metropolitan areas towards coast and country, the Greater Madrid region is not just a giant urban sprawl – outside the immediate boundaries of the capital and its outer suburbs, large swathes of countryside, mountains and small villages, with nature reserves, National Parks, ski resorts and inland 'river beaches' mean that, other than an actual coastline, Madrid is eclectic enough to suit any taste in lifestyle, whilst being well-connected by air, road and rail to the rest of the country and the world and even remote rural areas are within easy reach of all necessary facilities.
This means that although a rise in home-working is driving buyers out of the heaving metropolis with its higher prices, the Madrid region has seen a healthy hike in home sales and purchases this year – from 32% in February to 36% in August.
Related Topics
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