The pandemic aroused new housing needs among nationals and foreigners, larger spaces, tranquility, terraces and good views, which has triggered interest in homes located in coastal municipalities. In addition, for the first time, teleworking became popular, so many buyers were not looking for a vacation home, but rather wanted to move their usual home a few meters from the sea. The new demands ran into an environment with low interest rates which, added to the savings accumulated during the toughest months of the pandemic, generated a strong increase in purchase and sale operations in the second half of 2021. An effect that was noticeable from especially in the coastal municipalities, which concentrated 39% of the sales made last year, which almost doubles the 2020 figure, since it represents 45.4% more.
According to the Housing on the Coast 2022 report prepared by Tinsa, all the coasts have recovered pre-Covid sales levels, except Las Palmas and Santa Cruz de Tenerife (-1%) that in 2019 already had high levels of activity. However, all of them increased the volume of sales compared to 2020, a fact that was also reflected at the national level, beyond the coastal municipalities, since the total of 674,000 sales represented a growth of 38% compared to 2020 and 18% compared to 2019. In particular, the movement on the Mediterranean coast stands out, which accounts for a quarter of the housing market and 18% of new construction, since Malaga, together with the Canary and Balearic archipelagos, is the territory where sales in the coast represent a greater proportion of the total of the province.
This movement has been transferred to prices, so the Balearic Islands (€6,000/m2) and Malaga (€2,900/m2) have become the provinces with the highest average prices for second homes, while the national average is around 2,400 euros per square meter. Both also appear in the list of territories that have experienced a greater increase compared to the average prices of 2019 for new and used housing, 17% in the case of the Balearic Islands and 15% in Malaga. A trend, which as Tinsa reflects, has been maintained in the first quarter of 2022, since the price of housing in the Balearic Islands It has grown by 8% compared to the first months of 2021. However, the Pontevedra coast is the one that has increased its value the most in this period, up to 11.6%.
When looking for the profile of the buyer, it is necessary to point to Madrid, given that 28% of its inhabitants acquire housing beyond the borders of their Community and two thirds of them do so in coastal municipalities, the equivalent of 20,000 sales. Along with these, residents in the provinces of the Mediterranean arch and the western part of Andalusia, are the protagonists of the national demand. The majority of buyers who choose to acquire a home in another province opt for the north coast, especially Cantabria, which concentrates a third of the operations. Castellón and Girona also account for a large part of the interterritorial demand, while the Mediterranean coast attracts a greater proportion of local buyers who prefer the provinces of Alicante, Málaga and Tarragona.
However, national purchases in the island territories are practically anecdotal and only represented one out of every ten purchases, last year. In contrast, foreign investments that are motivated by the climate and its capacity to absorb holiday demand, by having a wide range of hotel and restaurant services, according to Tinsa. Italians, Swedes, Belgians and English are the protagonists of the purchase in the Canary Islands, very similar to that of the Balearic Islands, where there is also a high presence of Germans and nationals of other countries in northern and central Europe. Although foreigners do not leave aside the Costa del Sol, where in many municipalities exceed the national demand and their transactions represent 7% of the vacation home market.
The weight of the foreign investor is very relevant in coastal housing, their transactions represented 13.2% in the first quarter by acquiring more than 70,000 homes, which CaixaBank Research interprets as a sign of the recovery after the brake caused by the pandemic. This partly explains the evolution of prices in regions such as Alicante, where they have risen by more than 6% compared to July 2021 and in the last year it has risen as a new destination with great international weight. However, experts from the CaixaBank study center consider that the housing market will tend to slow down due to the loss of momentum due to temporary factors linked to the pandemic and the rise in interest rates. In addition, the increase in production weights may restrict supply in the medium term, which may lead to overheating in certain territories such as the Balearic and Canary Islands.
Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.
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