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The year of the pandemic boosts the sale prices of homes in Spain

Apr 6 (Reuters) – The price of homes for sale rose 1.5% in Spain over the past 12 months, in a context in which the coronavirus epidemic has increased consumer interest in buying homes outside of the big cities.

Ultra-low interest rates in the euro area have left mortgage prices at record lows, helping to stimulate demand for homes for sale.

According to the report presented on Tuesday by the Idealista real estate portal, the square meter stood at 1,784 euros in March 2021, with a quarterly increase of 0.3%.

Obeying the displacement of demand away from the center of large cities, the capitals have generally registered a more downward trend compared to the provinces and 28 of them have reduced prices during the epidemic, compared to only 19 provinces.

This evolution of demand can be observed in the capital of the country. Thus, the Community of Madrid as a whole is the area with the highest increase in the national territory, with an increase of 3.5% in favor of the owners. However, the city of Madrid is in fifth place among the large cities that have seen their prices fall the most, with a decrease of 0.8%.

The market for the sale of housing is an exception compared to other sectors such as the rental sector, which have been more affected by the crisis, and could continue to progress upwards thanks to the prospects that the economy will recover soon.

“Over the next few months it is possible that the consolidation of the vaccination processes will cause greater tensions in the demand of the large markets, so we could witness an increase in the rises,” says Francisco Iñareta, idealista spokesperson.

(Information from Flora Gómez; edited by Tomás Cobos)

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