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Spain Property Sales Hit Pre-Crash Peaks

Spain Property Sales Hit Pre-Crash Peaks

Home sales across Spain surged past the 60,000 per month mark in June for the first time since the boom year of 2007.  Reflecting a growing confidence in the market as Spain slowly emerges from the pandemic and completions recover ground and return to pre-Covid levels.

In total, 64,877 homes were sold across Spain in June 2021, according to the latest data just released by the Association of Spanish Notaries.  A figure which is 71% up versus June 2020 – when sales were of course enormously depressed by the onset of the pandemic and resulting travel restrictions imposed on foreign buyers.

However, the strength of the recovery is more clearly revealed by the fact that sales in June 2021 were also 41% higher than their corresponding pre-pandemic levels in June 2019 and 13% higher than in June 2018.

Industry observers have labelled this growth in sales as ‘spectacular’ – but have also cautioned that the bounce could also partly be attributed to pent-up demand, which is now being released as Covid restrictions are relaxed across the country and incoming foreign travel resumes.

Property prices in Spain have remained surprisingly robust throughout the last 18 months, confounding the expectations of many industry experts who predicted that values would fall across the country thanks to the combined double whammy of Brexit and the pandemic.

However, property asking prices actually went up over the last year in some of the more popular coastal and tourist areas such as the Costa del Sol, Balearics and the Costa Blanca.  Whilst other regions only experienced small single digit drops.

Which Spanish regions have experienced the biggest growth in sales over the last year?

The key tourist and coastal areas have led the way in this recovery.  With property sales growing by over 100% year on year in both the Canaries and the Valencia region.  With the Balearics, Andalucía, Murcia, Madrid and Catalunya all recording substantial increases in sales during June 2020 too.

Year on year improvement was entirely expected, as June 2020 was of course a low point for property sales in Spain.

But the scale of the recovery has been surprising – as with the exception of the Canaries and the Balearics (where the supply of homes for sale is more limited) all of these regions recorded higher sales figures in comparison to June 2018 as well.

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