The figures bear this out. Up to now, the evolution of prices has continued on an upward trend, according to the annual calculation. According to the monthly report from the valuations company Tinsa, no variations in the mean home price in Spain were recorded in May with respect to April. Despite this, the interannual increase in prices in the last twelve months is 3.6%, a figure that is similar to previous years.
Slight variations in sale prices
Though there are no fluctuations in price on a general level, some movement can be seen according to geographical location. The Tinsa analysis shows a slight increase in metropolitan areas at the expense of capital cities and large cities. The monthly value of the latter was -1.3%. Despite this, the increase over the last year was 3.8%, the same increase observed in the real estate market in areas such as the Balearic or Canary Islands.
However, the data indicate a boost in metropolitan areas, which saw a positive monthly variation of 2.7%. Taking into account the last 12 months, the figure is 5.2%. Does this mean a change in mentality after confinement? This was already a trend that was noted in the real estate market before the coronavirus crisis, but it seems that in the future, it will indeed have a significant influence.
This apparent tranquillity in the real estate market in spite of difficult economic circumstances has, according to experts, various causes. One of the reasons that housing prices have remained steady during the health crisis lies in the fact that property owners are waiting to see what could happen in the upcoming months before taking any decisions.
In addition, also of influence is the fact that in new construction, promoters have already closed on the sale of the large part of the homes that they had foreseen bringing out on the market throughout this year. Therefore, they can endure the crisis without needing to modify the prices of their real estate offer.
Rental prices increase
If real estate market prices seem immune to coronavirus’ influence, something similar is also happening in rentals. 2019 ended with historic growth indices. In 2020, for now, it does not seem that the health and economic crises are going to be a point of inflection.
Far from decreasing, the upward trend in recent months has remained steady, even rising in big cities and peripheral districts. All of this is in spite of the increase in the offer, as many owners of tourist flats have refurbished their properties to adapt them for residential rental.
It is true that home prices during the health crisis have remained steady and even increased in the case of the rental market. It remains to be seen, however, what the consequences and the response of the real estate sector will be within a few months, when things return to normal and when certain adjustments in the sale and, especially, rental markets are predicted.
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