Andalusian property has recovered well
The outbreak of the pandemic in March 2020 led to social changes at all levels: from consumer habits to work routines, through to the way we relate to others. The housing market was not immune to the effects of this dynamic and over the last 18 months the real estate market has registered important changes. Following the reopening of the market, recovery of activity in the housing market has been intense and, in addition, it is generalized in territorial terms: not all the autonomous communities have seen the same levels of activity, but all have seen an increase in the movement of real estate.
Andalusia has shown a great recovery in the real estate market returning to levels that existed prior to the pandemic. In February 2020 33% of Andalusians between 18 and 75 years old were in some way involved in the housing market (both from supply and demand) that percentage is now 32%, just one percentage point below. However, it must be said that Andalusia has maintained high levels of participation throughout the pandemic and the lowest moment was seen in August 2020 when participation fell to 29%.
Generally, the sales market has grown in all the autonomous communities. In Madrid, for example, 22% of individuals have participated in it in the last year. In the Basque Country they have been 20%, in the Valencian Community 19% and in Andalusia 17%.
More Supply and More Demand in Andalusian Rentals
The good performance of the housing market is also noticeable in the rental market. In general, both demand and supply are growing compared to before the pandemic and this causes the share of the rental market to grow from 14% before the pandemic to 20% today.
Prices of Homes For Sale
15 years ago the average cost of apartments for sale in Andalusia reached €185,000. Tsis has now dropped to €133,000 on average. The cumulative price of homes for sale has risen in Andalusia by 16% in 5 years, but has fallen by -11% in 10 years (2011) and -28% in 15 years (2006).
Analysing the prices that were paid for a home for sale 5 years ago (in 2016), the average price per square meter has increased by 16% in Andalusia (from 1,442 euros/m² in June 2016, to 1,666 euros/m² in June 2021). Thus, Andalusians 5 years ago (in 2016) had to pay an average of 115,360 euros for the purchase of an 80m² home, compared to the 133,304 euros paid on average in Andalusia in June 2021.
By Province Capitals
The city of Malaga is the only capital of Andalusia whose cumulative increase in homes for sale reaches 43% in 5 years (2016), 12% in 10 years (2011), but has decreased by -12% in 15 years (2006), according to a Fotocasa study.
For a house of 80 square meters for sale in Malaga capital, you paid 132,678 euros 5 years ago (€1,658 p/m² in June 2016), while in 2011 you paid 169,992 euros (€2,125 p/m² in June 2011) and in 2006, 215,553 euros were paid (€2,694 p/m² in June 2006).
The cities with a cumulative increase in sales from highest to lowest in Andalusia in the last 5 years (since 2016) are: Malaga capital with 43%, Cádiz capital with 22%, Seville capital with 21%, Granada capital with 17%, Huelva capital with 5%, Córdoba capital with 4%, Almería capital with -1.4% and Jaén capital with -8.7%.
In Andalusia, the price of second-hand housing experienced a quarterly increase of 2% in the third quarter of 2021 and a year-on-year increase of 4.4%, placing the average price at 1,700 euros p/m², according to data from Fotocasa. The quarterly increase (2%) is the first rise in this period after the fall of 2020.
