House prices in Spain return to pre-pandemic levels

House prices in Spain return to pre-pandemic levels
Housing prices in Spain return to pre pandemic levels. Photo: holzijue / Pixabay
The price of property in Spain has increased during the second quarter of 2021, and now stands at the same level it was in 2019, before the Covid-19 pandemic hit.

House prices in Spain rose by 3.3 percent in the second quarter of 2021, the biggest rise since the end of 2019, according to the survey of the Housing Price Index (IPV) carried out by the Spanish National Institute of Statistics (INE), published on Wednesday. 

“The annual variation of the Housing Price Index in the second quarter of 2021 increased by 2.4 points since last quarter, meaning a rise of 3.3 percent, the highest level since the fourth quarter of 2019”, the INE said in its report.  

The price of new homes shot up six percent year on year, while second-hand homes rose by 2.9 percent.  

There was also an increase seen in the price of family homes with outdoor spaces in green areas, a trend noted as a direct result of the home confinement and remote working during the Covid-19 pandemic. 

This quarterly increase confirms the recovery of house prices to pre-pandemic levels. 

The effect of the pandemic was not seen in the first quarter of 2020, when the price of housing rose by 3.2 percent year on year. However, in subsequent quarterly periods, it grew at a much slower pace.

In the last quarter of 2020, prices rose by just 1.5 percent and in the first quarter of 2021, the increase was only 0.9 percent year on year, the lowest rise since 2014, according to INE data. 

The increase was seen across all regions, but in particular, the ones associated with tourism.   

Housing prices rose by 6.4 percent in the Canary Islands and by 5.7 percent in the Balearics, although the greatest increase was registered in Melilla, with 6.7 percent.

By contrast, the smallest increases in housing prices were seen in Castilla y León, Aragón and La Rioja.

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