What is Wrong with Prices of Buildable Plots?
Looking at official land statistics in Spain shows a confusing picture. Whereas the price of plots suitable for large number of units declined in 2020 throughout the country, the price of individual house plots and houses themselves seems to uphold fairly well.
The immediate conclusion is that due to the pandemic people prefer to live in individual units with some garden and shy the densely populated city housing units. In the Coastal part of Spain, the absence of foreign buyers led to sluggish sales and forced the developers to cut back on the number of units ready for sale.
This of course has an impact on the demand and price of larger and more expensive plots. The tendency is clearly towards stand-alone houses or detached units with their own individual outside space.
In many smaller villages near urban areas the demand for plots already exceeds the number of units available and additionally led to the delisting of those plots where the seller is in a comfortable financial position, leading to a further tightening of the already tight market.
We believe this tendency to continue given the uncertainty associated with herd immunity and the unforseable mutations of the virus. Maybe a good time to start looking for your friendly town house or villa.
To be continued…
Ivo Kratschmer & Pablo A. Anderson