Average second-hand house prices in Spain in March 2021 reached 1,699 euros per square meter. This figure represents a drop of -1.16% compared to December 2020. Year-on-year, the increase was 0.56%. The monthly variation when compared to February 2021 was -0.64%.
The predictions for price falls that second-hand house prices would suffer due to the pandemic have not yet materialized with the expected intensity. The data after the first three months of the year suggests that the residential market has strengthened as a result of the shock that COVID-19 subjected it to. Ferran Font of pisos.com said “By spending more time at home, due to confinement first and restrictions later, we have become aware of the importance of having a home that make us feel good“. Font commented that “this renewed value that property has acquired makes the adjustments relevant only when the home is of low quality, but in most cases, the price has not changed or has changed little.”
However, he went on to suggest that “we cannot lose sight of the great disaster that the coronavirus has caused in employment, but we must not ignore that this situation has increased savings and this increase in capital could find an outlet in real estate investment, which keeps prices from sharp drops“.
In the first quarter of the year, the largest increases in second-hand house prices occurred in La Rioja (0.51%), Extremadura (0.36%) and Madrid (0.13%). The highest decreases were located in Andalusia (-2.33%), Navarra (-1.56%) and Castilla-La Mancha (-1.52%).
Year-on-year, the most significant increases came from Madrid (6.56%), Catalonia (3.83%) and La Rioja (2.09%). The largest drops were seen in Aragon (-3.65%), the Balearic Islands (-2.75%) and Castilla y León (-0.89%). The most expensive region in March 2021 was the Balearic Islands (€3,078 p/m²) and the cheapest was Castilla-La Mancha (€873 p/m²).
The largest quarterly increases in Spain’s provinces were recorded in Cuenca (3.34%), Cáceres (2.55%) and Ávila (2.16%), while the most significant decreases occurred in Córdoba (-4.82%), La Palmas (-3.95%) and Burgos (-3.65%).
Year-on-year, Girona (7.88%), Madrid (6.56%) and Huelva (5.68%) saw the biggest increases in the price of second-hand homes for sale in Spain. Meanwhile, the largest falls were recorded in Jaén (-7.60%), Córdoba (-6.56%) and Huesca (-6.38%). The most expensive province was Guipúzcoa (€3,166 p/m²) and the cheapest was Ciudad Real (€744 p/m²).