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- Housing. Rent on the rise and the price of the second hand, down
Economic activity stopped dead in April and with it the sale of homes, which fell by 39.2% in the confinement of the coronavirus in Spain.
The total number of transactions stood at 25,042 in the fourth month of the year, 28.1% less than the previous month and 39.2% less than a year ago, according to the Statistics of Transmissions of Property Rights published this Thursday by the National Statistics Institute (INE). It is the lowest figure in this month since 2014.
It is the first month where the impact of the pandemic on the movements of the residential market is evident, since only the second half of March was affected by the restrictive measures imposed by the Government following the declaration of the state of alarm on the 14th. INE itself acknowledges that the data is provisional and that the final number of transactions will not be published for a year. The agency also echoes the limitation of the freedom of movement of people that the Executive established and that in practice meant the almost total paralysis of contracts. Only those who were already in an advanced stage were able to complete themselves exceptionally and telematically.
90% of the houses transferred by merchanting in April were free and 10%, protected. In annual terms, the number of free dwellings transferred by merchanting decreased by 38.8% and that of protected dwellings, by 43%.
On the other hand, 17.7% of the transmitted houses were new, compared to 82.3% of used ones. The number of operations on new homes fell 41.3% in the year-on-year comparison and that of used homes, 38.8%.
No community was saved in that month from the declines. On the contrary, all presented negative annual rates in the number of merchantings, although the smallest decreases were in La Rioja (-20.8%), Cantabria (-25%) and the Balearic Islands (-27.8%), while that Navarra (-66.8%), Extremadura (-65.7%) and the Canary Islands (-60.8%) registered the greatest decreases.
Demand in the market
The progressive reopening of the economy in recent weeks is once again reviving movements in the residential market, where citizens are looking with interest at the possible opportunities that may arise.
According to a survey by the real estate portal flats.com, the Spanish population considers that it is a good time to access the housing market, both for buying and renting. Specifically, more than 70% of Spaniards believe that it is a good time to buy a home and another 57% think that it is also a good time to rent.
Regarding the impact on the economy that has triggered the coronavirus, 7 out of 10 Spaniards rule out the possibility of a crisis like that of 2008 again, but 8 out of 10 do expect house prices to drop. Regarding the return to normality of the real estate market, the Spanish are not so optimistic: 69% believe that it will occur from 2022 and only 5% bet this year.
Ferran Font , director of Studies of the firm, highlights the rapid reactivation of the market after the confinement: "The real estate sector is once again registering much dynamism, both due to the interest in demand and the closure of the operations that were temporarily paralyzed in March, April and May. That the population is active is a very good sign for the recovery deadlines to be met and the crisis to emerge in the fourth quarter of the year. "
In accordance with the criteria of The Trust Project
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