The Loans for the purchase of a home subscribed during the past year in the Balearic Islands have reached the highest value of the last decadewhich reflects the high price that real estate has reached in the market of the islands, as recognized by the employers’ association of real estate developers.
The report published yesterday by the Statistics National Institute (INE) indicates that During 2021, 9,087 home mortgages were signeda figure that is below the 9,463 of 2020 and the 10,032 of 2019, the latter year before the pandemic.
But the most important fact is the value that these credits have reached, and that in 2021 reached 1,865.6 million euros. Because although the number of mortgaged properties was lower, the money that had to be left to be able to acquire them exceeded that of previous years. Namely, more expensive houses were bought.
As a reference, it suffices to point out that compared to those 1,865.6 million euros last year, the amount reached in 2020 was 1,587.5 million, and in 2019 it reached 1,724.3 million.
To find a value higher than 2021, you have to go back to 2010, when it stood at 2,059.2 million euros. The difference is that to achieve this, 12,554 properties were mortgaged.
There is one fact that is extraordinarily significant: the average value of each mortgage subscribed in the islands during the past year was 205,310 euroswell above the 167,760 in 2020 and the 171,881 in 2019. But it is also that that average amount for 2021 is also clearly higher than that of the height of the real estate bubblewhen home appraisals could reach 120% of the real value of the property, with the serious problems that this subsequently generated.
The clearest case is 2007, before the aforementioned bubble burst. During that year, 35,025 mortgages were signed and their value reached 6,083.3 million euros, multiplying last year’s data by more than three. The difference is that in that year the average amount of these loans was 173,688 euroswell below that of 2021.
The vice president of the association of promoters of the Balearic Islands, Bartholomew Mayoladmits that what is happening right now is that the houses that are bought in the archipelago are more expensive than everbecause they are aimed precisely at a clientele with high purchasing power.
The sector is currently with a expensive land and some materials that suffered a notable rise in price during the previous months. But in addition, the crisis generated by covid has meant that a good part of the middle classes (except for groups with more stable jobs, such as civil servants or doctors, to name a few examples) have Had a lot of trouble getting banks to lend them money to purchase a residence, narrowing down the list of potential buyers.
The vice president of the promoters points out that the classes with more economic resources have not had this problem, to which is added a increased demand by the foreign population.
The result, according to Mayol, is that companies have seen that it is easier to sell a home for the rich than one for the middle classeshence they have focused on promoting the first of these products.
During the month of December alone, mortgages worth 211.5 million euros were signed in the Balearic Islandsan amount that exceeds by 116% that reached during the same month of 2020. This situation is unparalleled in any other autonomy, since second place is occupied by La Rioja, with a rise of 76.9%. The Spanish average was 31.8%. The aforementioned amount was achieved on the islands by mortgaging 831 homes, 63.9% more than in the previous year.
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