The Covid pandemic shrank the Spanish housing market by almost a fifth in 2020.
There were 486,846 home sales recorded by the Association of Spanish Notaries, down 15.2%, and 415,748 sales inscribed in the land registry, according to the National Institute of Statistics, down 17%. See below for more detail on the difference between the two sources.
But, as you can see from the next chart, the Spanish housing market was already on the slide in 2019, having peaked in 2017. There were other negative forces at work on the market before the coronavirus struck, but there’s no doubt that Covid was responsible for a large part of the decline in 2020.
The INE also publish a regional breakdown of sales, Using these figures to look at regions of most interest to foreign investors in the final chart below, you see that the three biggest destinations for foreign buyers – the Costa Blanca, the Costa del Sol, and the Balearics, all fell the most last year, in each case more than 20%. That makes sense, given how much they rely on foreign buyers who were unable to travel to Spain last year.
Spanish home sales figures come from two official sources: 1) The Association of Spanish Notaries based on sales witnessed by them in the month, and 2) The Institute of National Statistics (INE) based on sales inscribed in the Land Register by the Association of Spanish Land Registrars.