Alex Trelinski
HOME property sales in Spain collapsed by almost 20% in March compared to a year earlier, according to figures released on Thursday by National Institute of Statistics (INE).
The INE says 44,878 transactions were carried out- a 19.3% drop.
The return to a negative rate came after a 5.8% sales rebound in February, which ended a run of 12 consecutive months of year-to-year falls.
READ MORE:
- Now is a good time to buy property in Spain, says panel of experts – this is why
- Is the north of Spain the next property goldmine? Figures from February show sales in Galicia and Navarra are soaring – while Andalucia and the Canaries suffered a year-on-year decrease
- Revealed: How Swedes, Americans and other foreigners spend more when buying property in Spain compared to locals – and where they are purchasing the most
The March plummet was fuelled by a drop in transactions on new flats, which fell by 14% year-on-year, to 8,917, and a 20.5% fall in second-hand homes deals- totalling 35,961.
On a month-to-month basis from February to March, home sales fell by 15%, while in the first three months of 2024, the reduction was 5.6%- with a 3% increase in new properties but a decline of 7.6% in second-hand homes.
Francisco Iñareta, from the idealista property portal said: “The sharp drop in March has been surprising for its intensity, although it is consistent with the dwindling supply of properties available.”
“The seasonal factor of Easter, which this year was in late March when it was in April last year, could have helped to increase the year-on-year drop,” Iñareta added.
“It will be very interesting to closely monitor the future numbers to see if the extent of this drop is maintained or if it is just a blip as we move towards stability.”
By region, Andalucia had the most sales in March with 8,805, followed by the Valencian Community (7,423), Catalunya (6,802) and Madrid (5,944).
Only two regions sold more homes in March than a year earlier, namely Navarre (+37.6%) and Cantabria (+3.5%).
In contrast, 15 areas saw annual reductions in March led by the Balearic Islands (-39%), Castilla y Leon (-30%), Extremadura (-28.9%) and the Basque Country (-25.9%).
