The sale and purchase of housing in Spain grew by 23% and the price rose by 2.2% in July 2021

The sale and purchase of property in Spain grows and the cost of real estate rises
The sale and purchase of housing increased by 22.9% in July compared to the same month in 2020 - a period heavily impacted by the Covid-19 pandemic. July 2021 was closed with 64,039 transactions.

In addition, the average price per square metre stood at 1,475 euros this July, an increase of 2.2% year-on-year.

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This data is derived from the General Council of Notaries published on 16th of September, which also showed that the number of sales of apartments increased by 23.3% year-on-year, reaching 47,505 transactions, while single-family homes increased by 21.6% with 16,533 transactions.

Where are transactions picking up again?

Housing sales and purchases grew in all regions, but at very different rates. The highest increase was recorded in Cantabria (55.5%) while the lowest was in Navarra (0.4%).

Also with an above-average increase were La Rioja (43.1%); Catalonia (40.2%); Andalusia (30.5%) and Valencian Community (24.8%).

Below the average, but with significant increases in transactions, were the Balearic Islands (18%), the Canary Islands (17.5%), Castilla-La Mancha (16.6%), Castilla y León (16.2%), Aragón (15.7%), Asturias (14.6%), Madrid (14.5%) and Galicia (14.2%).

On the other hand, the regions with the lowest increases in sales and purchases were Extremadura (1.2%), the Basque Country (2.6%) and Murcia (8.4%).

Annual change in the number of transactions in residential real estate in Spain from July 2020 to July 2021 ( in %)

In which Autonomous Regions has housing grown in price?

The price per m2 rose by 2.2% on average in July compared to a year earlier, although according to the notaries there continues to be a high inter-territorial disparity – in twelve autonomous regions housing prices rose, while in the remaining five they fell.

The highest rise in property prices was recorded in Galicia (19.5%), followed by Aragon and the Balearic Islands (11.9%), La Rioja (11%) and the Canary Islands (10.7%).

These increases were followed by Andalusia (9%), Cantabria (7.3%), Extremadura (7.3%), Murcia (6.8%), Castilla-La Mancha (5.5%), Comunidad Valenciana (4.4%) and Madrid (2.8%).

In contrast, prices fell in Navarra (-10.5%), the Basque Country (-5.8%), Castilla y León (-3.4%), Asturias (-3.1%) and Catalonia (2.1%).

By type of housing, it should be noted that, although the prices of apartments fell by 4% (compared to the same month last year) to 1,624 euros/m2, the price of single-family homes soared by 17.9% to 1,260 euros/m2.

Mortgages soar by almost 50%

In July, mortgage loans for house purchases grew by 48.9% to 33,880 transactions and the average amount of these fell by 2.5% year-on-year to 147,820 euros.

The percentage of home purchases financed through a mortgage loan stood at 52.9%. Moreover, in this type of financed purchases, the amount of the loan represented 73.6% of the price.

The creation of new companies fell by 2.3%

Data from the Notaries' Statistical Information Centre also revealed that in July, the number of new companies fell by 2.3% year-on-year to 8,836.

Companies with a founding share capital of between 3,000 and 4,000 euros reached 6,67, a fall of 1.7%. Within these, the average incorporation capital was 3,039 euros.

Source: https://www.expansion.com/inmobiliario/mercado/2021/09/16/6143157ae5fdeaa8728b464a.html
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