Welcome to our January 2022 Newsletter. We hope you’ve had a great start to the new year and are excited about the opportunities ahead. We’re thrilled to share our 2021 Spanish mortgage market review with another record-breaking year for Mortgage Direct.
Enquiries surged by 63% compared to 2020, and the average mortgage size increased by nearly 50%, reaching €324,000 for all mortgages and €2,021,066 for those over €1 million. This impressive growth is particularly encouraging given the ongoing pandemic. We expect these figures to rise further in 2022. Clients seeking lifestyle changes, investors eyeing Spain as a prime market, and the continued availability of cheap borrowing drive the surge in activity.
2021 mortgage market review
There’s never been a better time to secure a mortgage in Spain. Both fixed and variable interest rates remain exceptionally low, with rates starting from 1% for foreign buyers. Additionally, mortgage setup costs have never been lower, with more banks offering a 0% opening fee. Property prices are still very reasonable, although this may not last. Mark Stucklin from Spanish Property Insight (SPI) recently highlighted that Spanish house prices declined after the pandemic started in 2020 but recovered strongly in 2021.
“Despite their different methodologies, they all show Spanish house prices declining after the start of the coronavirus pandemic in 2020, and then recovering strongly in 2021.” – Mark Stucklin, Spanish Property Insight (SPI)
A developer we recently met in Barcelona believes that prices will rise due to the global shortage of building materials and subsequent price increases. This trend was echoed by one of the main high street banks, predicting a 4% rise in property prices due to these factors.
Rising demand from German buyers
Regarding nationalities buying in Spain, Mark Stucklin noted that German buyers are now the largest group of foreign investors in Spain. We’ve also observed this trend, and we have recently recruited another German speaker to cater to this growing market. We anticipate that 2022 will be another record-breaking year as more clients decide to invest in Spanish properties.
Looking ahead to 2022
As we look forward to 2022, the Spanish mortgage market is driven by low interest rates and increasing foreign investments.
After checking our 2021 Spanish mortgage market review, if you’re considering buying a property in Spain, now is the time. Contact us at Mortgage Direct for expert advice and to secure the best mortgage deals available.
Best wishes for a successful year ahead,