The Bank of Spain’s spring Financial Stability Report warns that the impact of the health crisis on the real estate market will be significant, “at least in the short term”. It recalls that the market was already in a phase of deceleration, in terms of both activity and transactions, as well as prices, after the notable expansion of recent years.
However, it offers some hope by stating that the degree of recovery will depend on the extent to which the economic and financial effects of this upheaval persist. It also underlines that house sales contracted in 2019 in both the new build and, to a greater extent, second-hand housing segment. For its part, the growth in average house prices moderated, although the “high degree of geographic heterogeneity” continued.