June 2021 News
Contents
40,000 deals per month
Capitals losing residents
Costa del Sol — a budget option?
Tax on vacant real estate
Rental growth slowing down
Average age of housing
Cristiano opens hotel
1. 40,000 deals per month
Spain’s National Institute of Statistics (INE) published a report on the real estate market situation in June. According to INE, in spring 2021 (March — April — May), more than 40,000 purchase and sale transactions were registered monthly in the Property Registry. The 40,000 transaction mark for three consecutive months was last recorded in early 2020 — immediately before the pandemic began. This was reported by the Idealista portal.
The most transactions were registered in April — 42,211 transactions. Spanish experts note the market recovery and emphasize the success of new developments: in April 2021, 8,520 new homes were sold — 82% more than in April 2020.
2. Capitals losing residents
The National Institute of Statistics published additional data: in 2020, more than 60,000 people left Barcelona and Madrid. 21,510 people moved from Barcelona to smaller settlements, and 38,240 from Madrid. This is the largest population outflow from Spanish capitals since at least 1998, when this statistic began being collected.
According to several Spanish experts, the trend of moving to less populated areas of the country began in 2015, but became established with the onset of the pandemic.
3. Costa del Sol — a budget option?
Costa del Sol was included among Europe’s most budget-friendly resorts for summer 2021. The ranking was compiled based on the cost of a “basic tourist package” according to British journalists: a bottle of water, cup of coffee, soft drink, bottle of beer, dinner for two with wine, a separate glass of wine, mosquito repellent and sunscreen. The cheapest “package” in Europe is at Bulgaria’s Sunny Beach resort (27.71 pounds), followed by Turkish Marmaris (37.19 pounds), Portuguese Algarve (44.13 pounds) and Czech Prague (57.39 pounds). In fifth place — Costa del Sol (57.96 pounds).
For comparison: on Spanish Mallorca the package would cost 75.73 pounds, on Greek Corfu — 91.09 pounds, and in Nice — 94.72 pounds. Among non-European destinations, Indonesian Bali (55.01 pounds) and Vietnamese Hoi An (58.39 pounds) proved most affordable.
4. Tax on vacant real estate
The Basque Country government introduced a tax on housing that has been vacant for more than two years. Owners must pay an additional 10 euros for each unused square meter. At the same time, property tax (IBI) continues to be charged in full. Authorities intend to identify vacant properties using municipal registry data and analysis of water and electricity consumption. If housing remains unoccupied, the additional tax increases annually by 10% and can reach a maximum of 30 euros per square meter.
Similar measures were previously introduced in Catalonia and the Balearic Islands.
According to local authorities, about 20,000 houses and apartments are currently vacant in the Basque Country — this is 2% of the region’s housing stock.
5. Rental growth slowing down
Spain’s rental boom that began during the pandemic is declining. According to the pisos.com portal, in June 2021 the average rental cost decreased by 2.83% compared to June 2020 and amounted to 9.70 euros per square meter per month.
Rental prices fell fastest in Madrid and the Canary Islands (-8% compared to June 2020).
6. Average age of housing
According to the Idealista portal, the average age of housing in Spain in 2021 is 45 years. The oldest housing is located in Barcelona (76 years on average), followed by San Sebastián (57 years), Madrid (54 years) and Bilbao (52 years).
The “youngest” cities in terms of property age are Albacete (31 years), Lugo (32 years) and Murcia (33 years).
7. Cristiano opens hotel
The Pestana CR7 Gran Vía Madrid hotel, owned by famous footballer Cristiano Ronaldo, opened on June 7, 2021 — for the beginning of the tourist season in Madrid. This is the second Pestana hotel in the city after Pestana Plaza Mayor, launched in 2019. As the name suggests, the new hotel is located on Gran Vía — Madrid’s main street. The building’s facade was repainted from yellow to white. The Portuguese athlete’s total investment in the second hotel amounted to 13 million euros.
The hotel has 168 rooms on ten floors, two of which are dedicated to a solarium, pool and terrace bar. On the ninth floor, open to the public, there is a restaurant. Ronaldo’s new hotel positions itself as a supporter of sporting values, so it also features a large fitness club.