February 2021 News

Contents

  • How many deals fell through due to coronavirus?

  • Secondary real estate: finally profit!

  • Barcelona against weekend tourists

  • How much is all real estate in Spain worth?

  • Housing in strategic locations

  • Poverty in Mallorca

  • Standard & Poor’s forecast

1. How many deals fell through due to coronavirus?

Hoising on Balearic Islands

According to data from Spain’s National Statistics Institute, 415,478 villas and apartments were sold in 2020 — 17.7% less than in 2019, returning the market to 2016 levels. The Balearic Islands were hit hardest (-23.2%), followed by Valencia (-22.1%), the Canary Islands (-21.9%), Madrid (-21%) and Navarra (-20.9%). According to experts, if the pandemic ends in 2021, sales volumes will normalize.

2. Secondary real estate: finally profit!

Panoramic view of Toledo

Secondary housing prices showed moderate growth: the cost per square meter in January 2021 was 1,786 euros — 1.6% higher than a year earlier. The highest prices for secondary housing were recorded in the Balearic Islands — 3,108 euros per square meter, while the lowest were in Castilla-La Mancha (869 euros per square meter).

3. Barcelona against weekend tourists

Ada Colau

Barcelona authorities have prepared a bill for a complete ban on short-term rentals for less than 30 days. City mayor Ada Colau advocated for strict restrictions aimed against tourism’s influence on local residents’ lives and rising food prices. Since 2011, short-term housing rentals were only allowed with a license, and the issuance of new licenses was discontinued in 2014.

4. How much is all real estate in Spain worth?

Sea view from the balcony

The total value of all real estate in Spain reached approximately 4.1 trillion euros. The largest share belongs to Catalonia — 791 billion euros, followed by Madrid (719 billion) and Andalusia (619 billion).

5. Housing in strategic locations

Map screenshot of Cabo Roig

After Brexit, UK citizens are required to obtain permission from Spain’s Ministry of Defense to purchase real estate in the country’s military zones. Such zones include territories near Gibraltar, Cartagena, as well as parts of Torrevieja and Orihuela Costa.

6. Poverty in Mallorca

Empty streets of the city of Palma

Tourism provides about 75% of Mallorca’s income. Rising housing costs have forced locals to seek alternatives: some have moved to tent camps, others have relocated from rented apartments at 800 euros per month to individual rooms for 300 euros.

7. Standard & Poor’s forecast

The city of Vinaros

S&P agency forecasted “moderate growth” in Spain’s real estate market at 1.4% in 2021. This is higher than Italy and UK indicators, but significantly behind Germany (5.3%), Netherlands (5.2%) and Sweden (4.5%).