Housing sales grew by 11.9% despite a 7.9% price increase

Housing sales grew by 11.9% despite a 7.9% price increase

The number of housing purchase and sale transactions in August 2021 reached 38,154, with the average price per square meter at 1,396 euros, increasing by 7.9% compared to the same month in 2020.

This is evidenced by data published by the General Council of Notaries (Consejo General del Notariado). Apartment sales grew by 13.8% year-on-year and reached 27,599 operations, while individual house transactions increased by 7.1% compared to August last year — to 10,553 operations.

Meanwhile, the price per square meter of apartments decreased by 2.6% compared to August 2020 and amounted to 1,552 euros, while the average cost of individual houses reached 1,171 euros per square meter, showing growth of 18.3%.

According to notaries’ data, housing sales in August grew in 13 autonomous communities and declined in four. The most notable growth was recorded in the Balearic Islands — +37.8% year-on-year, while the largest drop occurred in the Basque Country — -13.5%.

Regions where growth exceeded the national average: Asturias (+6%), Galicia (+5.8%), Castilla-La Mancha (+5.5%), Aragon (+4.4%), and Extremadura (+1.7%).

Housing costs increased by 7.9%

The price per square meter rose by 7.9% year-on-year, although there was significant divergence between regions: growth was recorded in 14 communities, while decreases occurred in three: Aragon (-6.4%), Extremadura (-2%), and Murcia (-0.8%).

The most pronounced double-digit growth was noted in La Rioja (+37.9%), the Balearic Islands (+17.3%), the Basque Country (+16.4%), Andalusia (+16%), the Canary Islands (+11.3%), Galicia (+10.7%), and Madrid (+10.3%).

Number of mortgage loans grew by 11.8%

In August, the number of mortgage loans for home purchases grew by 11.8% year-on-year at the national level and amounted to 20,187 operations. The average loan amount decreased by 1.6% year-on-year — to 132,940 euros.

The share of home purchases financed through mortgage loans was 52.9%. In such financed transactions, the loan amount on average covered 74.2% of the property value.

By regions, mortgage loans for home purchases grew in 13 autonomous communities and declined in the Basque Country (-16.6%), La Rioja (-13.6%), Navarre (-6.7%), and Madrid (-2.9%). The highest growth was recorded in the Balearic Islands (+48.6%), Canary Islands (+33.1%), Valencia (+27%), Murcia (+19.5%), Catalonia (+18.5%), and Galicia (+16.3%).

Regarding the average size of mortgage loans, notaries noted heterogeneous dynamics across regions. Growth was observed in nine autonomous communities — particularly notable are the Balearic Islands (+53.9%) and Murcia (+11.5%), while decreases occurred in eight, primarily in Navarre (-26.2%) and Cantabria (-11.1%).