The Spanish real estate market continues to be very active. According to data from the National Institute of Statistics (INE), sales in Spain have increased by 17.9% year-on-year, boosting the average price of housing.
In Lanzarote, the square meter is about to exceed 3,000 euros. In July, it reached an average of 2,964 euros, 18.9% more than it cost in the same month last year when it marked 2,492 euros.
As a result of the increase in housing prices, the average nominal value of mortgages has also grown: in July, it reached 212,000 euros in Spain, 21.84% more than a year ago.
“The bank is doing its job very well: it has presented more profits than last year despite having seen its margin reduced by the fall in rates,” explains Ricard Garriga, CEO and founder of Trioteca, a company that advises on mortgages.
And, although banks have earned less per mortgage due to the fall in interest rates, they have managed to compensate for it by significantly increasing the volume of operations. In addition, regardless of the increase in loans granted, banking entities have managed to maintain balance with very strict risk criteria.
Garriga also points to the difficult access to rent as the engine of this demand. “Given the impossibility of renting at a reasonable price, many people choose to buy,” he says.