What was the impact of Covid-19 on the Total Number of Real Estate Property Transactions in Spain during 2020?
In 2020 the world economy experienced a mayor downturn in many industries due to the Covid-19 crisis. This also had an impact on the Total Number of Real Estate Property Transactions carried out in Spain.
According to the data provided by MITMA (Ministerio de Transportes, Movilidad y Agenda Urbana / The Ministry of Transport, Mobility, and Urban Agenda), belonging to the Spanish government, in 2019 the Updated Annual Total Number of Real Estate Property Transactions carried out in Spain were 569.993, contrasted with the 582.888 transactions carried out in 2018. Thus a negative annual growth in the number of transactions from 2018 to 2019, previous to the Covid - 19 crisis, was already experienced.
From a Horizontal Analysis we can identify that from 2019 to 2020, the Total Number of Real Estate Property Transactions in Spain had a negative growth of -14, 5 %, with 487.354 transactions in 2020.
By comparing the periods T1, T2, T3 and T4 of 2019 and 2020, we can have a clearer insight.
Comparison of the Total Number of Real Estate Property Transactions in Spain - T1, T2, T3, and T4 - 2019 and 2020.
T1 2019 – T1 2020
Comparing the period T1 from January- March 2019 to the same period in 2020, we can identify that there was a negative growth of approximately - 16% where the Total Number of Real Estate Property Transactions in T1 2019 were 138.374, and in T1 2020, 116.029.
T2 2019 – T2 2020
Comparing the period T2 from April - June 2019 to this same period in 2020, we notice that this is the period that has been impacted the most due to the Covid-19 crisis. Being the moment with the toughest lockdown restrictions that had already started in T1, lead to an approx. negative growth of – 47% where the Total Number of Real Estate Property Transactions in T2 of 2019 were 149.600, and 78.918 in T2 2020.
T3 2019 – T3 2020
Comparing the period T3 from July - September 2019 to this same period in 2020, we can appreciate that the number of transactions commenced to recover, showing approx. a 7% increase in the Total Number of Real Estate Property Transactions in the T3 2020 period compared to T3 2019, with 123.687 transactions in T3 2019, and 132.113 in T3 2020.
T4 2019 – T4 2020
Comparing the period T4 from October - December 2019 to this same period in 2020, we can appreciate that there was an increase of approx. 1% in the T4 2020 number of transactions with respect to T4 2019. Where in T4 2019 the Total Number of Transactions were 158.332, and in T4 2020, there were 160.294.
In the graph adobe we can visualize how T1 and T2, which were the periods with the most lockdown restrictions, were also the months where the Total Number of Real Estate Transactions decreased the most, followed by a recovery from T3 2020, and T4 2020 that experienced a better result than T3 and T4 in 2019, probably due to the pendent transactions from the previous periods. We can also notice that for both 2019 and 2020, T4 was the period with the most Number of Real Estate Transactions.
The negative growth impact caused by the 2008 Financial crisis was larger than the effect of the Covid-19 crisis so far, although its unquestionable that it has lead to a reduced growth.
Also, the various autonomous communities in Spain have been impacted to different degrees, as the average negative growth is approx. -14, 5 %, but various Autonomous Communities have experienced a larger or lower decrease when analyzed independently. If of interest, this will be analyze in future articles.
Article by: Liza Mellentin
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