Most likely, the prices will not change much in the next few weeks after the market reactivation, but in the future the difference between the prices set by sellers and the final transaction amounts will become more noticeable. As a result, prices will go down, but the rate of decline will vary depending on the characteristics of the property, its location and the urgency of the sale.
As for Barcelona, prices can be reduced by 7 – 8%. In Madrid, this figure may be slightly higher, and on average in Spain, it could be 10% during this year.
Coastal resort property will be going through a difficult time: many sales and purchases may simply not happen.
How long will the crisis last?
The impact of the crisis will be most noticeable in the short term, and if Spain and the EU use financial and tax incentives, a positive evolution can be observed already in 2021.
What is happening with prices now?
According to a study by Fotocasa, property prices in Spain have been slow to fall due to the health crisis. As of April, property values have increased in 52% of provinces and 51% of municipalities. Although, of course, now we are talking more about the “virtual showcase”, and not about the real one.
The study showed that the owners are not yet making big discounts. Moreover, in April prices even increased by 0.5% compared to March. At the same time, of course, it should be borne in mind that during this period the country was in quarantine, the real estate market was almost completely paralyzed, and the data presented do not refer to the final amounts of transactions, but to the prices set by the owners for their properties.
Nevertheless, in 9 autonomies, prices decreased over the month: Castile-La Mancha (-3%), Balearic Islands (-2.4%), Andalusia (-1.7%), La Rioja (-1.4 %), Galicia (-1.2%), Murcia (-1.1%), Canary Islands (-0.5%), Cantabria (-0.4%) and Extremadura (-0.3%). Growth was observed in 8 autonomous communities: Catalonia (2.8%), Aragon (1.4%), Valencian Community (1.4%), Asturias (0.8%), Madrid (0.7%), Navarra ( 0.5%), Basque Country (0.3%), Castile and Leon (0.1%).
The ranking of the most expensive autonomies for home buying is headed by Madrid and the Basque Country: on average € 3122 and € 2809 per sq.m. Followed by:
- Balearic Islands (€ 2693),
- Catalonia (€ 2492),
- Canary Islands (€ 1773),
- Cantabria (€ 1714),
- Navarra (€ 1678),
- Andalusia (€ 1611),
- Aragon (€ 1584),
- Asturias (€ 1568),
- Galicia (€ 1530),
- Castile and Leon (€ 1439),
- Valencian Community (€ 1430),
- La Rioja (€ 1392),
- Murcia (€ 1137),
- Extremadura (€ 1108),
- Castile-La Mancha (€ 1,082).
Property values set by owners upon sale have increased in 50% of provinces. The top ten growth leaders included the following provinces: Barcelona (3.6%), Cuenca (2.9%), Alicante (2%), Zaragoza (1.9%), Leon (1.7%), Jaen (1, 7%), Avila (1.7%), Las Palmas (1.5%), Teruel (1.2%), Alava (1.2%). The provinces with the strongest price drop: Albacete (-5.2%), A Coruña (-2.6%), Balearic Islands (-2.4%).
The most expensive provinces are Madrid (€ 3,122 per sq.m), Barcelona (€ 3,077), Gipuzcoa (€ 3,010), and the cheapest are Toledo (€ 963) and Ciudad Real (€ 978).
As for Barcelona, the value of resale property has increased in 7 out of 10 analyzed areas:
- Sarrià – Sant Gervasi (4.3%),
- Ciutat Vella (3.2%),
- Les Corts (1.6%),
- Horta – Guinardó (1%),
- Nou Barris (0.7%),
- Sant Andreu (0.4%),
- Eixample (0.2%).
A fall in prices was observed in Sants – Montjuïc (-1.3%), Sant Martí (-0.2%) and Gràcia (-0.01%).
The most expensive area of Barcelona today is Sarrià – Sant Gervasi (€ 6077 per sq.m.). This is followed by Les Corts (€ 5604). The only area where the cost per square meter does not exceed € 3000 is Nou Barris (€ 2598).