According to Savills Aguirre Newman, new construction has recovered and its growth has increased throughout 2020/2021 to reach 12% of total sales during the first quarter of 2021, the highest percentage in the last six years.
At the regional level, Andalusia stands out, with 93,588 homes, is the autonomous community with the highest number of sales in Spain. It is followed by Catalonia with 74,564 properties. The Valencian Community, with 69,743, has established itself as the most active market in relation to its population due to the presence of some of the most in-demand holiday markets and the high level of activity in the various provincial capitals. It is followed by the Community of Madrid with 67,040 properties.
According to the international real estate consultancy, basically, 100% of new-build properties are sold on delivery. This is due to various factors, including the fact that most of these projects are aimed at the middle and upper-middle classes, who have a better financial situation and a more positive view of the future. Another factor is that the down payment is paid gradually during the construction process, making it more manageable compared to second-hand homes. Also, the selling price of these homes remains at a prudent level for buyers.
On the other hand, demand from the foreign population continues to occupy a significant percentage, accounting for 14.70% of total sales. Likewise, 40% of sales carried out by this group correspond to non-resident foreigners in Spain.
Savills Aguirre Newman states that the market is recovering during 2021, but that until 2022 it will not reach the development levels of 2019. In such circumstances, the country’s main cities of Madrid and Barcelona, where in 2020 more homes were started up than in 2019, stand out, as opposed to the holiday markets that have suffered a decline in occupancy.
In terms of sales prices, these have continued to grow during 2020 at a faster rate than in 2019 and are expected to continue to rise by around 5% throughout 2021. The markets of Madrid, the Balearic Islands, Barcelona and Malaga have an accumulated growth of over 20%, compared to provinces such as Soria, Palencia, Teruel and Ciudad Real, which continue to adjust their prices.
