• Culmia has released a new report that gauges opinions and analyzes the homebuyer experience in Galicia, from the initial search through to the signing of the purchase agreement.
• 53.8% of Galicians prefer an apartment, followed by a house at 48.7%, a penthouse at 17.4%, a house in a gated community at 10.8%, and a condo at 13.8%.
• People over the age of 35 account for the largest share of home purchases, with the 46- to 64-year-old age group leading the way (57.5%).
• For 1 in 2 people, the lack of options within their price range and the scarcity of properties in the area they are interested in are among the main challenges they face when searching for a home.
• In general, the budget in Galicia ranges from 100,000 to 200,000 euros (39%). Additionally, 20% would have a budget exceeding that amount. Only 2.3% would allocate more than 400,000 euros.
• Businesspeople are the most desirable type of neighbor for Galicians, followed by scientists and actors.

November 28, 2022.—The pandemic and the impact of lockdowns have changed the priorities of homebuyers in Galicia at every stage of the process, from the start of the search to the final closing of the purchase. This is demonstrated by the findings of the report “The Homebuyer’s Journey in Spain” by Culmia. Prepared by the polling firm Sigmados, it offers a current snapshot of the profile of homebuyers in Spain and its autonomous communities.

The report reveals that 37.9% of Galicians say they are currently considering moving. In general, those who are considering a move prioritize having a terrace or garden, larger living spaces, or the opportunity to live in a newly built home.

This search for larger living spaces is primarily driven by the typical profile of today’s homebuyer, the majority of whom—60.4%—have households with three or more members, followed by couples, at 28.3%. In contrast, only 8.7% of people currently looking for a home live alone.

Along these lines, and according to the report’s data, 64.7% of respondents admit to having searched for a home at some point, and of those, 45.6% ended up buying one. In general, people over the age of 35 are the ones who purchase the most homes, led by the 46-to-64 age group, at 57.5%.

For the most part, people who are looking for a new home already own their own home. Some 40.3% own their homes, and only 26.6% are looking for a new home while still living in their family home. Of particular note here is the 33.1% of people who currently rent and are looking to buy a home, in line with the current trend in the residential market.

What kind of housing do Galicians want?

The housing search in Galicia focuses primarily on owner-occupied homes; however, within this category, there is a distinction between the search for newly built homes (42.1%) and pre-owned homes (30.8%).

By age group, it can be seen that the 36- to 64-year-old group is more likely to opt for new-construction homes for ownership (55.45%), compared to people aged 26 to 35, who show a certain preference for owner-occupied resale homes.

Apartments are the most sought-after option, at 53.8%, followed by single-family homes at 48.7%, penthouses at 17.4%, homes in gated communities at 10.8%, and condos at 13.8%. As for preferences, spacious homes are most popular, with three-bedroom units being the most sought-after (54.4%), followed by two-bedroom units (21%), and four-bedroom or larger units (17.9%).

Main reasons for moving

The pandemic has shifted the priorities of the typical homebuyer, and along with more spacious homes, other factors beyond the interior itself are now valued. Among the main reasons that have prompted Galicians to start looking for a home, 22.1% cite the possibility of having a terrace or garden, while 19.1% cite a lack of space in their current home as a driving factor for the move. Other reasons for the search include the desire to live in a newly built home (18.5%), living in a home that is in poor condition or outdated (16.9%), or moving for family reasons (14.4%).

When it comes to location, potential buyers are generally reluctant to relocate or make moves that involve long distances. 25.6% say they are looking for a home in the same city and even the same neighborhood where they currently live; 23.6% want to live in the same city but in a more central neighborhood; and, conversely, 20% would like to live in the same city but in a neighborhood farther from the center; This is in line with the 17.4% who are looking for a home in the same metropolitan area but farther from the city center.

On the other hand, 11.8% are looking for a home in a more central location within their own metropolitan area, a figure that matches the number of those who want to live in another city within the same autonomous community. Only 2.1% would like to move to a city outside the autonomous community.

The impact of the pandemic and changing needs are also reflected in the factors that are most highly valued when deciding to buy a home. In addition to price and location, Galicians rank having a larger home and parking and/or a storage room as their third priority. Having a private terrace and a bright home are the other two major deciding factors.

Search Process: Influence of Family and Friends and Greater Digital Impact

Galicians tend to seek advice and guidance from those they consider closest to them when making these kinds of decisions. Some 59.5% acknowledge that they value advice from family and friends most when making a decision, while 44.1% say they value advice from a professional in the field more.

Regarding the most commonly used methods for starting a home search, the report shows that digital channels—and, specifically, those specializing in the real estate sector—are gaining more and more ground. Some 73.3% say they conduct these searches through real estate portals, 33.8% use Google to find options, 30.8% consult a real estate agent, and 27.7% visit developers’ websites to review their listings. It is noteworthy that 22.6% consult friends directly when conducting their search.

Finally, channels such as social media and retail locations are used by 17.9% and 11.3%, respectively. And with regard to advice and support, Galicians consider the role that real estate developers play throughout the entire purchasing process to be significant. The aspects most highly regarded in relation to sales representatives are support and advice (37.3%) and visits to model units (35.3%).

A fast purchasing process and quick quotes

The time spent looking for housing generally ranges from 1 to 12 months, with 6 to 12 months being the most common duration, and the youngest group spending the most time on the search.

Similarly, the main difficulties they encountered during their search were, for nearly 50% of them, a lack of options within their price range and a shortage of products in the area they were interested in.

And when it comes to budgets, generally speaking, 39% of respondents in Galicia set their budget between 100,000 and 200,000 euros, while for 28.5%, the budget would be higher than those figures. Thus, budgets of up to 100,000 euros fall in the middle range, accounting for 36.4%; 20% would invest up to 400,000 euros; and only 2.3% would allocate a budget exceeding that amount.

In addition, for 41% of people who bought a home, their budget was on track and they did not notice any deviation; 33.7% say the purchase was 10–20% more expensive, and for 10.1%, it was up to 20% cheaper. 6 What do Galicians do when they get home? Who would be their ideal neighbor? The report also highlights some interesting facts about Galicians’ behavior at home, many of which relate to the “new normal” following the pandemic. In fact, 44% of those surveyed say the first thing they do when they get home is take off their shoes. Putting down their keys (19.1%) and greeting their family (13.7%) are the second and third options, respectively. As for Galicians’ preferences when it comes to choosing a neighbor, 22.2% would like their neighbor to be a businessperson; 20.8% would prefer a scientist; and 10.2% would choose an actor.