As our blog followers well know, last year was a particularly busy one for sales on the Costa del Sol. The latest statistics from the Notaries Association show that there were record sales of the property in Spain in 2021, confirming the countrywide. Not only did transactions go through the ceiling, but prices soared too, as did mortgage loans.
Sales of property in Spain skyrocket by 38.1%
Any comparison with 2020 must obviously come with a caveat since the pandemic skewed most statistics for that year. But 2020 apart, 2021 was one record year for sales. The latest statistics show that transactions went up by 38.1% in Spain last year to reach 676,775.
According to the Notaries Association, this is the highest number since June 2018 and it also represents the highest on record (December 2008). In addition, several parts of Spain experienced even bigger upticks, with the Balearic Islands seeing the busiest activity, up 51.3% compared to 2020.
The Canary Islands saw a 43.7% rise in activity, closely followed by Andalusia with an increase of 43.1%. As the Costa del Sol, Costa Blanca was also popular with buyers last year and sales in this region grew by 41.7%.
Apartments take the lion’s share
This type of property made up most sales in 2021, confirming the national preference for apartments. More than 507,000 changed hands last year, an increase of 38.2% in 2020.
Detached homes, including villas, accounted for just over 25% of the market, although transactions soared in this sector too. Sales went up by 37.8%.
Prices for property in Spain rise
After a relatively stagnant year for prices in 2019, the Spanish property market has since experienced steady increases. The Notaries report finds that prices went up by 5.3% nationally, although several regions saw considerably higher rises.
The Balearic Islands saw the highest yet again. Here, prices rose by 14.2% to reach €3,322 per metre, the most expensive of all regions in Spain. House values also increased substantially in Andalusia with an 8.1% rise.
Apartments experienced a relatively modest shift in prices and rose by 3.6% last year to reach €1,701 per square metre on average. On the other hand, values for detached properties went up by double-figures (10.2%) to reach €1,195 per square metre.
Balearics and Basque Country have the most expensive property
Of the 17 Spanish regions, the Balearic Islands had the most expensive property last year. The average square metre went up by 19% to reach €3,322 a square metre. The rise in prices in the Basque Country was lower (5.9%), but the region maintained second place with an average of €2,548.
Madrid was not far behind. In the city and province, house prices rose by 11.7% last year to reach €2,512 per square metre on average. In Cataluña, property values went up by 13.4% to sit at just under €2,000.
Busy mortgage market
Mortgages across Spain reflected the frenzied activity in the property market in 2021. The number of approved loans rose by 35.7% last year to a total of 344,432 operations. The average amount borrowed went up by 2.9% to €147,654.
The Balearic Islands topped the table yet again with the most mortgage approvals (over 233,000). Murcia, where the approvals went up by 41.3%, saw the biggest increase in new loans. Cataluña and Andalucia followed closely behind with increases of 40.9% and 38.4%, respectively.
Buy on the Costa del Sol this year
If you’re planning to buy property on the Costa del Sol, get in touch with our expert team. They’ll be more than happy to guide you to the right area and the property that ticks all your boxes.