Home prices in Spain, remained strong even though sales slowed down amid the Covid-19 pandemic, according to a report.
Across the country, the average home price (measured in price per square metre) rose 3.2% year-over-year in March. Compared to February, it was up 0.3%, according to a leading international real estate agent, citing data from Spain’s property portal Idealista.
In Madrid, the average home price increased 1.6% annually and rose 0.2% month-over-month in March.
“We expect sales volumes to slow significantly in the second and third quarters before gaining traction in the final quarter of 2020, but prices will prove more resilient, particularly in the prime segment,” said the head of international residential research of the real estate agent, in the report.
There has been an increase in mid-March of online viewings of prime properties – after remaining flat since early February – which suggests buyers have been researching the market despite the pandemic, the report said.
Market activity is expected to pick up as the government has relaxed some of its lockdown restrictions which permits workers in “non-essential” industries, including construction and manufacturing, to return to work.
In Madrid alone, there are 552 new residential developments being built, for a total of 26,713 homes, which will help address the supply shortage in the market, according to the estate agent in the report.
The country has 191,726 confirmed cases and 20,043 coronavirus-related deaths as of today, according to the World Health Organization. But the daily number of new cases has dropped in recent days with fewer new infections a day at its height in late March and early April.