The property market is moving steadily towards a post-pandemic recovery that is confirming its resilient character despite a scenario of new uncertainty due to the war in Ukraine and inflation, which in turn has an impact on supply and demand confidence and on the evolution of the mortgage market. Interest rates will be affected by inflation, as will EURIBOR, the reference rate for most mortgages in Spain.
Nevertheless, even in this context that seems convulsive, the Spanish mortgage market is having a good moment, at least with respect to 2021. In January, the number of mortgages on dwellings increased by 29.4% year-on-year, reaching 36,185 mortgage loan signatures in the first month of the year. This is, however, lower than the more than 40,000 contracts that were signed in January 2020, shortly before the start of the coronavirus crisis.
In this sense, according to data provided by the National Statistics Institute (Instituto Nacional de Estadística, INE), there have now been 11 consecutive months of year-on-year rises, which demonstrates the upward ‘rebound effect’ of the property market after the worst months of the pandemic. The average amount per mortgage also recorded positive figures in January, increasing by 9.5% year-on-year to reach 141,427 euros per mortgage contract. Total lending increased by a remarkable 41.7% to over 5,117 million euros in financing.
If analysed regionally, those in which the highest volume of mortgages were signed in absolute terms were Andalusia, with a total of 7,644 contracts, followed by Madrid (6,063), Catalonia (5,833), and the Valencian Community (4,050). On the other hand, the regions in which most capital was lent for the constitution of mortgages on dwellings were Madrid (1,268.7 million euros), Andalusia (976.6 million), and Catalonia (953.5 million).
Thus, in view of the official statistics, there is nothing left to do but celebrate the good performance of the mortgage market and its stability resulting from the reactivation of the economy and the solidity of demand which, given favourable financing conditions, continues to be very active in the purchase of residences in Spain, in many cases with the help of financing. In this respect, Tecnotramit‘s professionals work to remain leaders in mortgage management and formalisation at a national level. For this specific service, the company has over 450 staff members distributed between 6 centres in Madrid, Barcelona, Palma de Mallorca, and Lisbon. Our consultants are specialists in the formalisation, signature assistance, post-signing management and cancellation of mortgage operations for both individuals as well as property developers.