The information on the real estate prices has been recently released for the second quarter of 2021 with positive numbers, maybe too much, and in line with the general optimistism and the activity on the market. The rise in the home closing prices, not asking, in Benahavis has been of 8,7 % in this second quarter that added to the increases of previous quarters gives an annual increase of 22,9 % that I hope will moderate with time because it is not healthy for the market a maintained increase on those levels. If we take into account the asking prices for homes as published by the real estate portal Idelista, the tendency is exactly the same with price increases although, in this case, the upward tendency has been more continuous since 2017 and even maintained during 2020. The percentages for the asking price are 1,2 % in the second quarter and 12,1 % in the last twelve months. This tendency can be observed on Chart 1 where both the asking and closing prices are shown with upwards tendencies in the last years.
CHART 1 - ASKING PRICE vs SOLD PRICE
Going deeper with the data, it has also been studied the variation of the closing prices for second hand properties and new built properties. The reality observed after the analysis shows clearly that the sale of new built units is the one pushing up the prices of homes in Benahavis. While the closing price of second hand properties hardly goes up, the price of new builts has gone up 61,4 % during last year.
CHART 2 - SECOND HAND SOLD PRICE vs NEW UNIT SOLD PRICE
Chart 2 shows the complete different tendencies: closing prices of new built units skyrocking and the ones of second hand homes with a slight increase over the years. In fact, that gap in closing prices is too big wide and may deviate part of the market to the purchase of second ahnd units with the idea of refurbishing them to obtain a final product with a final price cheaper than the price of a new unit. I personally hope that we keep on having this upward tendencies but on a more moderate way to be on a more healthy market.