The housing market is experiencing a moment of growth in terms of the sale of homes, second-hand properties continue to dominate the market, with more than 450,000 operations, while new-build properties reached 20, 3% of total sales in 2021 and the situation continues along the same path so far in 2022.
Since January 2021, the sale of new-build housing, almost all purchased off-plan, has not fallen below 8,500 units, figures that have not been repeated regularly since 2014.
The supply of new construction will continue to be lower than what the demand asks for
Despite these outstanding numbers of new construction homes, the current housing supply does not satisfy all the demand of national and international clients looking for a new home, especially towards new construction.
According to the Association of Builders Promoters of Spain (APCE Spain), which estimates that between 120,000 and 150,000 new units per year are needed until 2030 to cover the structural demand of the market.
Developers / builders have already warned that the current uncertain economic environment will cause visas to fall compared to the previous year. “The works started before the crisis will be finished, but 43% of the promotions that were still pending the granting of the new construction license will wait for the economic environment to improve”, due to the fact that the costs related to the energy are the ones that are affecting the sector the most, products such as steel, aluminium, copper, zinc or cement are the materials with the highest price increases.
For now, new builds are experiencing their particular boom in prices, according to the latest Euroval report the absolute average price is already +33.3%.
“The sustained growth in demand and the upward trend in prices have made newly built homes one of the most profitable options in the real estate market”