Is it time for a second home in Granada?

You can find everything you need in Granada, including beaches, mountains, gastronomy and an enviable artistic and historical heritage. There are many attractions in this province that will make it tempting to take a vacation at the Costa Tropical, or even live close enough to a university town with its centuries-old history.

This is perhaps why the population has continued to grow in recent years. It reached 921,338 people in 2021 according to the National Institute of Statistics. This has seen a significant increase in the Granada real property market. The Granada real estate market has seen a 34.42% increase in the number of transactions and purchases that were made over the last year. The INE data shows that the highest record for the first three months since 2008's real estate bubble burst has been set by Granada.

Ferran Font, director of Estudios de piso.com says that the strength of the residential sector is at its highest point, with sales figures we haven't seen since the boom. Expert Ferran Font says that brick's return to brick as a refuge value is not just due to the savings made during the pandemic but also because of the financing terms banks have provided. He points out that the evolution in interest rates is one factor that could limit buyers' enthusiasm. "Inflation is on the rise, and if the conflict in Ukraine continues, this indicator may break records." The European Central Bank would attempt to stop its escalation and raise official rates. This would make mortgages less appealing for buyers.

After more than five years of negative rates, the Euribor was back in positive territory in April. "Many people are still conscious of how their fees grew up until they became unpayable. Analyst: "Despite the fact that fixed rate loans are more costly, this option will still be the majority of buyers who require financing."

Granada has been one of the Andalusian regions where prices are most stable, despite the recent increase in sales. Although the average cost of buying a house in this province is 3.35% higher than it was a year ago it is still cheaper than in neighbouring territories like Cadiz (EUR1,508/m2) and Malaga (EUR2,326/m2) as well as Seville (EUR1,398/m2). According to piso.com's report on sales prices, Malaga has seen the highest price rises in the past twelve months.

Font says that although second-hand homes are more expensive than they were a year ago it is still growing below the general price index. Font also said that while the CPI can affect residential, its effect is minimal. According to data, this modernization is attributed to a number of factors.

A rebound in foreign buyer interest has been observed. Data from the Real Estate Registry Statistics shows that they represented 7.05% or 1.49% more buyers in the first quarter than in the previous quarter. Piso.com's spokesperson stated that the real estate sector is showing strength and dynamism, which shows that it is one the most safest markets for investors.