The Spanish property market has achieved its best sales performance in 13 years! The region that is attracting investors most strongly is Andalusia, which saw more than 20% of all completed property purchases in Spain in three months.
Record number of transactions. Andalusia the leader
In the third quarter of 2021, the Spanish property market saw a record number of transactions. According to data released by the Association of Secretaries of Land, Business and Movable Property Registries (Colegio de Registradores), between July and September the number of property purchases made reached 154,155, the best result since the beginning of 2008! The results achieved are 12.4% higher than the sales figures of the previous quarter and approximately 50% higher than the result achieved in the same period a year earlier.
The report presented by CdR showed that as many as 14 Autonomous Communities managed to achieve a quarterly increase in sales, while decreases were recorded in only three. The regions with the highest number of transactions in the third quarter of 2021 were:
- Andalusia – 32 433,
- Catalonia – 24 040,
- Community of Valencia – 22 177,
- Community of Madrid – 21 685.
Each of these regions contributed 21.04%, 15.59%, 14.39% and 14.07% to the performance of the entire Spanish property market respectively – a performance well above that of the other communities.
Overall, a total of more than 534,000 transactions were carried out in the Spanish market over the last 12 months, the best result in 13 years. It is worth noting here that almost 20% of all transactions are purchases made in Andalusia, which reached 108,000, followed by Catalonia (84,000) and Madrid (76,000).
The data collected in the report illustrate the growing strength of the real estate market in Andalusia and the Marbella area in particular. They confirm the significant increase in interest in real estate also recorded by Agnes Inversiones in the context of houses and villas on the Costa del Sol, among others. The current year is breaking all previous sales records and this has been influenced, among other things, by the reduction in the transfer tax on values, which has been in force in Andalusia since April. The last quarter of 2021 could see even better results than those achieved in the July-September period, as December will see the finalisation of many previously prepared property purchase transactions.
Tax reductions, the threat of rising inflation, and the shift from stationary to remote or hybrid modes of working are just a few of the factors behind the rapid growth in property sales. Marbella is attracting investors not only for its climate, but also for the huge profit potential of owning a luxury property on the Costa del Sol.
The number of transactions carried out in the third quarter of 2021 far exceeds the best sales performance achieved in the respective quarters of 2018 and 2019. This means that the Spanish property market has not only managed to overcome the crisis caused by the COVID-19 pandemic, but has also emerged from it even stronger than it was before it erupted.
Record interest in real estate
The excellent result achieved in the third quarter was made up of transactions in the secondary and primary property market in Spain. The data collected shows that 124,722 secondary market house sales were made (12.5% quarter-on-quarter increase), the highest result in fourteen years (since the beginning of 2007). On the other hand, 29,433 sales transactions were registered in the primary market, representing an 11.6% increase on the previous quarter and achieving the best result in seven years.
The results achieved by the individual Spanish provinces confirm the dominance of the four Autonomous Communities over the other regions. The six provinces with the best results are located in the Community of Madrid, Catalonia, Andalusia and Valencia, respectively:
- Madrid – 21,685,
- Barcelona – 15 629,
- Alicante- 9 925,
- Málaga – 9,255 (in which Marbella is located),
- Valencia – 9 166,
- Seville – 5 486.
The record results of property purchases in Spain achieved in the third quarter of 2021 allow us to look to its future with optimism. Of particular note is the strong interest in houses and flats in Andalusia, which confirms the attractiveness of this region, both as an ideal place to live and in terms of investment.
