The housing market in Andalusia is experiencing a moment of peak mortgage activity After more than a decade of adjustments and gradual recovery, around [number] agreements have been signed between January and September. 71.000 mortgages on homes in the community, a figure that had not been seen since the years prior to the last major financial crisis.
This uptick places Andalusia among the territories with Spain's greatest residential dynamism, both due to the growth in the number of loans and the sharp increase in borrowed capital and the volume of new construction approved. Official data from the INE (National Institute of Statistics) and the Ministry of Housing and Urban Agenda, analyzed by the Andalusian Regional Government, point to a sector that has regained momentum and is facing a new expansionary cycle, although with a more cautious tone than that recorded before 2008.
A volume of mortgages not seen since before the crisis
Between January and September, the number of mortgages taken out on homes in Andalusia experienced a year-on-year increase of 21,5%until it reached around the 71.000 operationsTo find a similar volume of signatures in the same period of the year, one has to go back to 2010, when 85.138 mortgage loans were closed, just before the collapse of the real estate sector.
If the perspective is broadened to include all of Spain, the evolution in Andalusia remains in line with the average national behaviorwhich is also experiencing growth rates exceeding 20% ​​in the number of mortgage loans. What distinguishes the region is the combination of a sharp increase in the number of transactions with a strong surge in lending capital, reinforcing its role as one of the clearest centers of mortgage recovery in the country.
In September alone, Andalusia registered an increase of 6,3% on home mortgages compared to the same month last year. This monthly increase translates into thousands of additional signatures and is supported, above all, by a demand that is once again looking to buying as a priority option over renting, even with some more demanding interest rates than in years of cheap credit.
In October, the region continued to stand out on the national map: Andalusia, Catalonia, and Madrid together exceeded 10.000 mortgages on all types of properties, but it was the Andalusian region that It alone exceeded 10.000 mortgages specifically on homesconsolidating its leadership in this specific segment.
More borrowed capital and strong demand for financing
The increase in transactions is accompanied by a notable jump in money volume which is flowing towards home purchases. Between January and September, the capital lent for mortgages on homes in Andalusia amounted to approximately 10.375 millones de euros, which represents an increase of approximately 35,7% compared to the same period of the previous year.
This percentage far exceeds the evolution of the number of mortgages, suggesting several combined factors: higher average loan amounts, housing with higher purchase prices, and a greater access to credit by households that have decided to buy. In any case, the increase in mobilized capital places Andalusia among the regions where financing for home purchases has been most reactivated.
The Ministry of Economy, Finance, European Funds and Social Dialogue, headed by Carolina España, interprets this behavior as a a sign of confidence in the regional economy and in the stability of the real estate market. According to the regional official, the combination of improved employment, specific tax policies, and programs to support access to housing is contributing to sustaining solid demand, especially among first-time buyers.
Even so, the increase in borrowed capital requires monitoring the evolution of household debt...of the cost of monthly installments and mortgage granting conditions, so that growth remains within sustainable parameters and to avoid foreclosures and imbalances similar to those experienced before 2008 in Spain and other European countries.
Recent record in housing visas and construction boom
The dynamism is not limited to the mortgage market: Promotional activity also shows signs of strengthIn September, some applications were processed in Andalusia. 2.261 visas for new construction homesThis represents approximately 18,3% of the national total. This figure highlights the community's role as one of the main drivers of residential construction in Spain.
The cumulative total for the first nine months of the year has been recorded 26.147 housing visasThis is the highest level for a January-September period since 2008, when 43.729 authorizations were reached. The year-on-year increase is around 5%, slightly above the average advance across the country, which is around 4,8%.
For the Board, this evolution in new construction reflects a Growing confidence among developers and investors in the Andalusian residential market, as well as a better alignment of supply with effective demand. The construction sector, severely impacted after the bursting of the housing bubble more than a decade ago, is regaining importance in the regional economy, albeit with a more controlled growth pattern supported by new regulatory instruments.
The combination of a higher number of mortgages and a higher volume of visas suggests that the market is in a phase of coordinated expansion between financing and constructionThis implies more construction work underway, greater job creation linked to the construction sector, and an increase in the available housing stock, aspects that are especially relevant in a context of price pressure in many cities and coastal areas.
Measures taken by the Board to facilitate access to housing
The Andalusian government links some of these results to a package of public policies focused on housingAs Councillor Carolina España has pointed out, the latest regional budgets have increased funding for this area, with a clear commitment to the construction of public housing and by the reduction of the tax burden associated with the purchase of a primary residence.
The Board claims to have multiplied by four the construction of public housing Compared to previous phases, the aim is to expand the range of affordable options for groups with greater access difficulties. At the same time, more than 460 million euros in tax measures related to housing, which include bonuses and reductions in certain regional taxes with a direct impact on buyers and owners.
Another focus is on young people: more than 1.200 people under a certain age would be benefiting a guarantee system which allows covering up to 100% of the appraised value at the time of applying for the mortgage, thus facilitating homeownership for those who have income but lack sufficient savings for the down payment and initial expenses.
Meanwhile, the newly approved Housing Law of Andalusia It is structured around several pillars: expansion of the social housing stock, liberalization and regulation of developable land, simplification of administrative procedures, strengthening of legal certainty for developers and buyers, tax relief measures, and promotion of public-private partnerships. The stated intention is to provide municipalities with an effective tool to accelerate the implementation of projects and reduce bottlenecks in permits and land management.
In response to the frequent criticism of national housing policy, the Andalusian government emphasizes that its approach involves combine incentives and effective offeremphasizing that it is not just about approving regulations or announcements, but about implementing new promotions, delivering homes and facilitating broader and more stable access to the market.
Andalusia is one of the autonomous communities where the mortgage and construction reactivation This is becoming increasingly noticeable. The rise in the number of mortgages, the strong growth in lending capital, the rebound in new construction permits, and the implementation of public support measures paint a picture of remarkable dynamism, but also of responsibility: the key will be to maintain this momentum without repeating past excesses, ensuring that the housing supply, the quality of developments, and the financial health of households keep pace with an expansionary cycle that, for now, places the region in a prominent position within the Spanish residential market.
