Spanish property sales are higher than they have been since before the 2007 financial crisis, and estate agents believe the coronavirus pandemic may have something to do with it.
First published on April 1st in the April edition of the Gazette.
The thunderous bursting of Spain’s property bubble 15 years ago still echoes today, with the sector facing a slow uphill recovery throughout the 2010s. Growth was dealt another blow by the lockdown, which briefly paralyzed sales altogether, but that experience now appears to have had a positive effect on property sales, with sales of apartments and small homes increasing throughout almost all of Spain.
The lockdown and its aftermath appears to have had a profound effect on many existing or aspiring homeowners. It became clear that those with a private garden or outdoor space enjoyed far more freedom and fresh air than those who lived in apartments with, at most, a balcony, and sales of properties with a garden or terrace increased after the lockdown.
Enforced confinement also caused many homeowners to reassess the suitability of their home. DIY saw a huge increase, but it is clear that many others simply decided to move into another, larger property. Sales of properties measuring more than 90 square metres shot up in the year after the lockdown.
Then there’s employment. Before the lockdown, working from home was a novel idea for many businesses. During and after it, it became indispensable, and many discovered the advantages brought by increased flexibility of working time, as well as savings on transport and rental costs.
When home becomes your workplace, it’s hardly surprising that it will be reassessed and perhaps changed for something more suitable, such as larger, cheaper properties that are not central to the big cities.
There were other, less positive reasons for increased sales. Divorces rocketed during the lockdown, and that also helped increase sales The 35-44 year-old age group were the ones who bought the most properties, but those from 25-34 accounted for 25% – a welcome increase from previous years.
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