The price per square meter of used housing in Córdoba is in 2020 at 1.109€, with an interannual variation of -6.16%. Thus, the price of second-hand housing in the city breaks with the upward trend of the last two years. The city of Córdoba presents a steeper descent than Malaga (-1.44%) and lower than Seville (-8.21%), where prices also begin to fall after several years of rising. For its part, the average rent in the city also drops, specifically -9.5%, which places the square meter at € 7.1. The variation in the rental price in Seville is -2.4% (the square meter is at € 9.8) and in Malaga it falls by -3% (and leaves the square meter at € 9.3).
This information is derived from the report Analysis of the housing market in Andalusia, study that is prepared with the information of the real estate and financial intermediation operations carried out by the Tecnocasa Group offices in the community, where the group has a total of 154 franchised offices.
Real estate market in Córdoba
Lázaro Cubero, Director of Analysis of the Tecnocasa Group, has presented other interesting data. Thus, for example, it has detailed that “the highest volume of apartments sold in Córdoba is in the range of € 75,000 a 150.000€“, with 46% of the total transactions carried out in the city during this year 2020. The type house sold has the following characteristics: it is a house of more than 80 meters square (44.5%), it has an elevator (60.3%), it has 3 bedrooms (63.5%) and the property has an average age of between 40 and 60 years (60.3%). For its part, the home buyer In the city, 79.6% of the cases need financial aid (mortgage) to buy a home.
The impact of the covid
Regarding the demand for existing housing, the report indicates that, as a result of the confinement derived from Covid-19, new buyers incorporate as basic requirement that the home has a balcony or terrace. According to Lázaro Cubero, “this requirement has grown as a result of the confinement, with a significant number of potential buyers requesting that the property have a balcony or terrace. Of course, always in the same area where they already reside.” Cubero also highlighted that the number of people interested in buying in the city, and with it the number of purchase requests and the number of visits to properties, has recovered and reaches similar levels prior to the pandemic.
Investors in Córdoba
In 2020, the number of investors, those who buy a home to put it on the rental market, stood in the city of Córdoba at 22.2%, below the national average (25.1%) for this year 2020.
“The current prices, as well as the good offer available make Córdoba attractive for the purchase,” says Cubero, who adds that “however, it is important to search well among all the existing supply and select those homes that are at the real price of the current market, as many private sellers they overvalue their properties in real estate portals, 23% specifically in the city of Córdoba, incorporating future expectations into the current price or without taking into account the effect of Covid-19 on the real estate market. “The overvaluation places the property far from the current reality and from the recommendations of the experts in the sector.
Buy versus rent
The study also emphasizes the “good gross rental profitability in the city of Córdoba”. Thus, Lázaro Cubero emphasizes that with a rental property in Córdoba you can obtain a “gross annual profitability of 7.71% ‘, or what is the same, an annual income of 7,020 euros.”
In addition, we can also highlight that, currently, in the city of Córdoba it is more interesting to buy than to rent. Thus, a person who has some savings can obtain a mortgage payment less than a rent. As an example, for a property of € 91,000, with a mortgage of 80%, at an annual interest of 2.5% and with a term of 25 years, the monthly payment of the loan would be 327 euros, while the monthly rent would rise to 585 euros, with a difference of 258 euros per month.