What did the Spanish property market do in 2021?

By any accounts, the Spanish property market has enjoyed an excellent year. So good, it’s been one of the best on recent records. Sales have more than exceeded pre-pandemic levels and prices have regained their upward trajectory. In this article, we dive deep into all aspects of real estate in Spain this year and make some predictions for 2022. 

Sales of Spanish property in 2021

The latest official figures for this year show double-digit increases in transactions in Spain. The Spanish Institute of Statistics (INE) reports that sales rose by over 22% in the year to October. In many parts of Spain, property sales have returned to their pre-pandemic rates. 

At the local level, records are being broken. For example, in September, real estate sales on the Costa del Sol broke a new record. Transactions rose by 42.96% in the year and by 55.5% in 2019. 

While it’s true that the rate of sales has slowed down throughout the country since the summer, 2021 has still been a busy year. 

Sales on the Costa del Sol 

According to figures for Q3 this year from the Spanish Ministry of Transport, Mobility and Urban Agenda, many municipalities on the Costa del Sol saw a big increase in sales. 

Supply of homes in Spain in 2021

2020 saw few changes to inventory levels in Spain as a whole. 2021 has seen a mixed bag with some parts of the country starting to see lower supply and others with plenty of it. 

According to the property portal Idealista, the number of homes on the market in Madrid in December this year is 14% lower than a year. In Barcelona, however, the supply of property is 3% higher. 

On the Costa del Sol, inventory levels are adequate with a balance between supply and demand. This is particularly true in the new-build sector where the absorption level nears 100%

Property prices in Spain this year 

In March 2020, many experts predicted that property prices in Spain would plummet, but the reality has proved to be very different. INE statistics pointed to a slight drop at the end of the year, but since then, values have risen. 

Their latest figures (Q3 2021) show a 2.1% increase compared to the previous quarter and a 4.2% rise in the year. 

However, these general figures hide more significant variations at regional level. The Costa del Sol, for example, has experienced higher price hikes over the last year and has a result, has some of the most expensive property in the country. 

Property in Nagueles in Sierra Blanca in Marbella ranked fourth in Spain for the biggest price increases since 2019. In this part of the Costa del Sol, real estate has gone up by 41.2% since 2019. 

Find out why property in Sierra Blanca is so popular

Spanish real estate in 2022

This summary of the Spanish property market in 2021 reiterates our forecasts for the new year. Everything points to continued buoyancy in sales and steady price increases. 

Much will depend, however, on inflation and mortgage rates. For the former, opinions vary as to whether the current rises are transitory or here to stay for longer. And for the latter, experts are unanimous that interest rates will change little in 2022 with homes loans continuing to be their cheapest for years as a result. 

Find your home now 

With the current trends showing no real signs of shifting, we believe that now is the time to buy. To help you find your ideal property on the Costa del Sol, get in touch with our expert team, who will be more than happy to assist you. 

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