Spain | Housing during the pandemic: and now what?

Some 675,000 homes were sold in Spain in 2021, 38.1% more than in 2020, and well above the level of 2019, before the outbreak of the pandemic. Sales regained the pre-pandemic level in the summer of 2020 and have maintained a robust growth trend since then.

Key points

• Key points:
• Growth has been supported by several factors. First, the release to the market of demand that remained unsatisfied during the months of lockdown in the harshest phase of the first wave. Many transactions had to be postponed due to the impossibility of carrying out administrative procedures or visits to properties. Other households decided to postpone their buying decision to wait out the uncertainty of those months.
• The second factor to highlight has to do with the quality of real estate as an investment asset. In the face of the low return of assets of comparable risk, housing continued to be an interesting option.
• The emergence of new demand is the third factor. During lockdown, households spent more time at home, combining chores, work and leisure time. This longer stay at home awakened in some cases the need, or the desire, to have a larger residence.
• Going forward, a positive performance of the real estate market is expected, provided that the good outlook for economic growth is maintained, subject to the development of the crisis triggered by the Russian invasion of Ukraine, which is creating a lot of uncertainty in the economic scenario.

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