Spain | Real Estate Outlook June 2020

Summary

The first known data from the real estate sector at the beginning of the confinement corroborate that Covid 19 has affected the sector. In March, home sales fell by 41% m/m, the highest since 2007. House prices fell for the first time in 21 quarters (-0.4% m/m) and residence permits decreased by 36% m/m.

Key points

• Key points:
• Weak housing demand in March led to a drop in home sales (-41% m/m) and in the number of mortgages (-37% m/m).
• In 1Q20 house prices highlighted the slowdown that began in 2Q19.
• In March, residence permits decreased by 36.0% m/m and construction employment fell by 4.0% m/m in March 2020. In May there was some recovery after the April crash.
• Nevertheless, the real estate market is better positioned to face a contraction than in 2008.

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