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Learn about the new trends in the real estate sector in Spain

One of the pending subjects of the real estate sector for this year and the coming ones is the rehabilitation of the residential real estate park. A great challenge since half of the buildings intended for housing in Spain are more than 50 years old and less than 5% have an efficient energy rating (A, B or C).

According to data from the Ministry of Transport, Mobility and Urban Agenda, in Spain around 30,000 home renovations are carried out each year. At the current rate of reforms, it takes 308 years to rehabilitate the entire Spanish real estate park and reach the decarbonisation goal of 2050, according to UCI estimates.

For this year it will be key to the push for energy rehabilitation in Spain. UCI’s expectations are positive in this regard and it estimates that this sector of activity will move close to 30,000 million euros and will generate up to 400,000 jobs in the coming years.

The thrust of energy rehabilitation in Spain

The arrival of European funds may be one of the main impulses for the rehabilitation of homes, with average subsidies of 10,000 euros to undertake these works, to which the owners will have to add private capital or specific financing solutions for this purpose. Regarding the mortgage market, according to INE figures, the number of mortgages constituted on housing has grown by 15% between 2021 and 2019, while the average amount of loans has increased by 6% in the same period of time. In addition, the percentage of financed purchases remains at only 45%, a very stable figure in recent years.

The trend towards a fixed rate

According to UCI experts, one of the differential factors in the mortgage market will continue to be the fixed-rate trend, which has been the norm in 2021. As with mortgage firms, purchase and sale levels have recovered in 2021. In fact, 676,775 new and used homes were sold in Spain last year. This translates into an increase of 38.1% compared to the sales registered in 2020 and 19.4% more than in 2019, according to provisional data from the General Council of Notaries. This is the highest figure since 2007, when there were more than 850,000 home sales nationwide.

The thrust of energy rehabilitation in Spain

UCI experts point out that Spaniards will continue betting on second-hand housing over the next few years. Faced with this trend, from UCI they emphasize the importance of betting on the rehabilitation and energy reform of the housing stock from the moment of purchase, taking the opportunity to finance the reform together with the acquisition to benefit from the mortgage rates and terms.

Source: El Economista

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