New construction reaches 12% of total sales in 1Q 2021

New construction reaches 12% of total sales in 1Q 2021

At the regional level, Andalusia stands out, which, with 93,588 units, has become the autonomous community with the highest number of sales in the country. Catalonia is followed with 74,564 units. The Valencian Community, with 69,743 units, has established itself as the most active market in relation to its population due to the presence of some of the holiday markets with the highest demand and the high activity in the different provincial capitals. Behind the Community of Madrid is positioned with 67,040 units.

According to the international real estate consultancy, practically 100% of new construction homes are sold at the time of delivery. This circumstance is due to various factors, among which it stands out that these projects are mostly aimed at the middle and upper-middle class, who maintain a better economic situation and a more positive vision of the future. Another factor is that the down payment is progressive during the construction process, making it more affordable compared to second-hand homes. In addition, the sale price of these homes is kept at a reasonable level for buyers.

Regarding the demand from the foreign population, it continues to occupy an important percentage, with 14.70% of total sales. In addition, 40% of the purchases made by this group correspond to foreigners not resident in Spain.

New offer on the market

Savills Aguirre Newman believes that the market is recovering during 2021, but that it will not reach the promotion levels of 2019 until 2022.

In this context, the main cities of the country, Madrid and Barcelona, ​​where the construction of more homes began in 2020 than in 2019, are especially striking, compared to the holiday markets that have suffered a decrease in their activity.

Sale prices

Regarding sales prices, according to the international real estate consultancy, they have continued to grow during 2020 at a higher rate than in 2019 and it is expected that throughout 2021 they will continue to increase by around 5%.

The markets of Madrid, the Balearic Islands, Barcelona or Malaga have accumulated growth of more than 20%, compared to provinces such as Soria, Palencia, Teruel or Ciudad Real, which continue to adjust their prices.

Iberian Property logoIberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!