Five of the ten municipalities in Spain, where property prices since the beginning of the pandemic have increased most significantly, are located in Andalusia. This is the conclusion reached by the portal Idealista.
The Portal compared the prices posted by sellers, in September 2021 and the same month in 2019. It turned out that the coastal municipalities in Andalusia have the highest increase in asking prices for real estate in Spain. One of the reasons for this is called the impact of the pandemic on the balance of supply and demand.
The largest increase is recorded in the district of Las Salinas in the city of Rocuetas de Mar in the province of Almeria – prices here have increased by 46% since 2019. Three areas of the top ten are in Marbella, where prices rose by 41%.
Andalusia is still the region of Spain, causing interest from foreign investors. The Association of Spanish Notaries confirms the analysis made by Idealista: prices in Andalusia are rising faster than in any other region with traditionally high activity of foreign buyers, with the exception of the Balearic Islands. Information from lawyers and realtors of the Andalusian coast confirms that the real estate market on the Costa del Sol is currently experiencing a sort of mini-boom.
The Balearic Islands – another region where the Association of Spanish notaries noted a steady rise in prices. However, only one municipality of the archipelago made the top 10 – the regional capital of Palma de Mallorca, where prices since the pandemic rose to 30%.
The same Idealista reports that on average in Spain, prices have not yet risen to the level at which they were before the pandemic. What has caused their rise in some areas? According to many realtors, this is because as a result of the pandemic, buyers are now more interested in buying more space, with access to fresh air, located near major cities with good transport infrastructure. The desire to leave the central urban areas closer to the coast is one of the reasons why asking prices are falling in most areas of Barcelona, but rising in the resorts, particularly in Marbella.
