Despite the economic crisis caused by the pandemic, the worst omens have not occurred. The real estate market, although affected, was not as severely hit as was feared. Of course, the sale and rental prices have maintained an uneven trend. And, at the moment, no substantial changes are expected.
Upward, albeit moderate, the trend in house prices
In the first quarter of 2021, we've seen a slight upward trend. Thus, the price of housing rose by 0.9% in the interannual rate, being six tenths less than in the previous quarter, according to the Housing Price Index (IPV) prepared by the National Institute of Statistics (INE).
House prices have risen, but with differences.Second-hand housing grew 0.7% year-on-year in the first quarter, three tenths more than in the previous quarter. In new housing, its value increased 2.3%, almost six points less than the preceding quarter. In both cases, they are minimum growth levels not recorded since 2014.
By communities, Basque Country, Madrid and the Balearic Islands reported the most relevant decreases in IPV rates. On the contrary, the Canary Islands, Galicia, Aragón and Cantabria registered the highest increases.
Specialists foresee that this trend of slow growth in home sale prices will continue, being a growth more restrained than in the months before the pandemic.
Lower rental prices
If the sale market has weathered the crisis better than could be foreseen, the picture has been different for the rental market. While the housing supply has risen because many owners have changed to long-term their previous holiday rentals, the economic capacity has decreased. Besides, in some cases, we find oversized rental prices.
In these circumstances, rental prices have, in some cases, experienced significant drops, above 10%. That would be the case in large cities like Madrid and Barcelona or like the islands, where the price of rents had reached historic heights before the pandemic.
Regarding what may happen in the coming months, the experts, as in the case of the sale market, do not expect significant changes in the evolution of prices.
Sale and rental prices: a good time to invest
The real estate market, therefore, is situated in a scenario of containment. Nevertheless, everything seems to indicate that soon there will be no sudden variations in sales and rentals prices. It is a favourable moment to invest in housing or consider renting as prices are better than those before the COVID-19 crisis.
Spainhouses.net helps you decide. On our website, you will find a section where you can check statistics of the evolution of sale and rental prices, both in general and by region. So you can have a clear vision of the situation.
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