Real estate activity falls by 1.9% in the second quarter

The Real Estate Activity Registration Index (IRAI), which integrates data from the real estate market both from the demand perspective and from the supply perspective, recorded a slight decline of 1.9% in the second quarter of the year, according to information released by the College of Registrars.

By components, the index linked to property decreased by 2%, a drop that has been partially offset by an increase in the price level. In turn, the commercial component also showed a negative evolution, with a decrease of 1.7%.

From the demand perspective, both the sales index, down 2.6%, and the mortgage index, down 0.8%, have contracted.

In parallel, from the supply side, the decline has been due to both the behavior of the construction sector (-2%) and that of the real estate sector (-0.9%).

The smoothed index, adjusted to eliminate seasonal effects, advanced by 1%, already chaining two years of upward trajectory since the second quarter of 2024. Although the growth rate has softened, the path of the smoothed index remains positive, in contrast to the slight decline observed in the general index during this period.

Despite this, the annual evolution of the IRAI continues in positive territory, with growth rates above 5%, standing at 5.4% in the second quarter compared to the same period of the previous year.

Regarding the annual variation of the simple demand indices, registrars have detected significant growth, explained both by the increase in the amount of mortgages, which has reached 15.3%, and by the rise in the price of sales, of 10.2%.

If we look at the volume of operations, the number of sales has recorded a minimal decline of 0.1%, while the number of mortgages has grown by 5.2%. As a result, the general sales index has risen by 5.1% and the general mortgage index has risen by 10.3%.

On the other hand, the simple supply index, which captures the commercial activity of the real estate and construction sectors, has shown an advance of 1.9%, driven mainly by the good performance of the construction sector.