The lack of tourists , the shortage of product and the high prices of real estate have made the Canary Islands and the Balearic Islands two of the residential markets most affected by the coronavirus pandemic . At least in a matter of transactions.
This is confirmed by the latest report from the UVE valuations appraiser, which estimates the collapse of operations in Santa Cruz de Tenerife at 19.67% in the first quarter of 2021 compared to the same period in 2019 (before the pandemic broke out) . The decrease stands at 19.08% in the Balearic Islands .
In addition to the islands, the appraiser highlights that home purchase transactions dropped significantly in other tourist areas such as Alicante or Malaga . In the first case, the decrease reached 13.23% and in the second, 2.57%.
“In general, it is the provinces with a stronger tourism component that have seen the number of transactions decrease more clearly, ” says the UVE Evaluations report. The ranking of provinces where sales transactions fell the most in the first quarter of 2021 is completed with Huesca (-23.46%), Soria (-15.94%), Álava (-8.48%) or Toledo ( -8.3).
For their part, the provinces in which home sales transactions grew the most were – with the exceptions of Valencia and Seville – those in which the market had been less active since 2015. With all this, the national average has recovered levels prior to the coronavirus crisis .
The prices have moved at a different pace to the sale of operations . The difference is especially evident in tourist areas. There, and despite the fact that transactions fell to double digits, prices practically did not change. In Santa Cruz de Tenerife the decrease was 0.76% in the last four quarters compared to the same period of 2019, while in the Balearic Islands prices rose 0.35%.
The report confirms that the same circumstance has occurred in Madrid and Barcelona. Operations returned to the 2019 level, but prices declined. Specifically, in the Community of Madrid the adjustment reached 1.28% and in Barcelona 1.6%. ” Barcelona, Madrid and Alicante stand out in the drop in prices when buying a new home since confinement “, say the experts from UVE Evaluations.
The UVE Valores report confirms that the drop in prices was especially pronounced in the provinces of Soria (-5.41%), Palencia (-4.12%), Ourense (-3.97%) and Teruel (-3, 05%).