Second-hand flats are experiencing a real boom due to the scarcity of new construction, growing more than double and accounting for more than 80% of the operations
The real estate sector is not aware of the war in Ukraine, inflation and supply problems. Home sales rose 25.6% in March from a year ago, with a total of 59,272 transactions recorded. This is the highest figure since January 2008, amid the housing bubble, and the best figure for a month in March 2007, according to data from the National Institute of Statistics (INE) released this Friday.
Despite the current moment of economic uncertainty, it has already chained 13 straight months of rising and five months above 50,000 transactions, a milestone not repeated since early 2008, when the Great Recession broke out. But while there are similarities with that period, there is one feature that distinguishes the two stages and that keeps the threat of a new real estate boom at bay: on this occasion, the strong advance is mainly based on the sale of second-hand houses and not on new construction, which are scarce and thus far from pre-2008 levels.
For example, more than 80% of homes sold in March were second-hand (47,762 transactions, a record figure since January 2007), while new ones accounted for only less than 20%, namely 11,510 transactions and are at 2014 levels. second-hand sales double that of new ones: 28.3% compared to 15.7%.
The idealista spokesperson, Francisco Iñareta, emphasized that this data demonstrates the “strength” of this sector and explained that the signs of the imminent rise in mortgage prices may have accelerated the purchase of many homes to try to counter the imminent rate of increase. overcome announced by the European Central Bank (ECB).
The Director of Studies and spokesperson for Fotocasa, María Matos, is not afraid of the impact of the war and inflation in this sector. Moreover, it believes that just as it has emerged stronger from the pandemic, in the face of a war, the investment readiness of individuals drawn to refugee housing could be awakened in a different context of prolonged economic uncertainty.
According to INE data, 92.1% of sales transferred homes were free and 7.9% protected in the third month of the year. Free home sales rose 26.5% year-on-year to 54,614 operations in March, while listed homes grew 15.6%, bringing a total of 4,658 operations.
Seven in ten home sales in March (69.2%) were between natural persons.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.