July 13, 2024 | 11:32

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The housing purchase and sale market in Euskadi will soon be illiquid

The capitals of the Basque Country stand out for their high real estate costs

Maria Jose Gonzalez

November 8, 2023 | 12:58 pm

A Decreasing Trend in the Basque Real Estate Sector

La real estate industry in Euskadi faces critical moments, with a market that shows clear signs of contracting towards possible illiquidity. The figures don't lie, and the abrupt drop in home buying in the region, higher than the national average, places this sector at a financial and social crossroads.

The Statistics Speak: A Steep Decline

La purchase of real estate has experienced a significant reduction, marking a decrease that exceeds a quarter of operations compared to previous periods. This decline has been reflected in all facets of the market, from the granting of mortgages to prices per square meter. The average cost per square meter, which stood at 1.643 euros, now faces a decrease of 0,9%. It is an indication of a price adjustment that has not gone unnoticed among market agents.

A Complex Panorama for Buyers and Sellers

The property sellers They are seeing how their room for maneuver is reduced, while buyers, despite facing slightly more affordable prices, find themselves with an increasingly narrow and less liquid market. The granting of mortgage loans has plummeted, decreasing by 26,2% in Euskadi, exceeding the national average and accentuating the concern that the home buying and selling market will become illiquid.

Differentiated Impact by Housing Type

While apartment prices have seen a decrease in value, single-family homes have registered a slight increase, demonstrating a divergence in the market reaction depending on the type of property. This trend highlights the complexities and the multifaceted dynamic of the Basque real estate sector.

The Market Response to an Uncertain Future

Given these changes, the behavior of the market points towards a scenario where liquidity, a vital element for its health, is seriously threatened. More expensive access to financing and investor expectations point to caution that could further slow transactions. The Basque Country is preparing to face a period where the purchase and sale of homes could not only decrease in number, but also in the fluidity with which they have been carried out until now.

Final Reflection: A Market at the Crossroads

In conclusion, the Euskadi real estate market is at a turning point. The signs are clear and the consequences immediate. The next steps for promoters, investors and public policies will be crucial to defining the future of a sector that already feels the weight of global economic uncertainty. The question is: will we be up to the challenges that this represents?

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