Bare home ownership continues to rise and the Canary Islands registered 138 operations in 2023

Bare ownership is the right of a person over a home of which they are the owner but with the limitation of not having the right to use and enjoy it until the usufructuary dies, who is precisely the person who sold it to them.

In the real estate field, particularly in housing, The purchase and sale of this right is becoming increasingly common taking into account the greater life expectancy and the expenses that come with a chandleespecially for the elderly, some of whom do not have resources or a sufficient pension to allow them to continue living in their home.

In line with the growth it is experiencing, last year it closed with 1,845 purchases and sales of bare home ownership11.3% more than a year before, although its growth has moderated compared to 23.7% in the previous year, all in a 2023 marked by successive increases in interest rates to stop inflation and that have weighed down both transactions and the granting of mortgages and not prices.

In this way, three years of growth have accumulated since the annual minimums of the series managed by the College of Registrars, which were reached in 2020 with 1,093 operations of this type.

In fact, the 2023 result represents the highest amount since mid-2014 and the maximum level in the last nine and a half years, as stated in their real estate yearbook. Based on this data, they believe that with the passage of time, bare ownership will intensify.

The autonomous communities with the highest number of purchases and sales of bare home ownership during the last year were the Valencian Community (461); Andalusia (321); Madrid (263); Catalonia (212) and the Canary Islands (138).

Except in four communities, it registered increases in the vast majority with Castilla y León (73%), La Rioja (18.5%) and Extremadura (18.5%) leading the way.

Increasing trend

Given the greater life expectancy (men 80.4 years and women 85.7 years, according to the latest data from the National Institute of Statistics, INE); the increase in economic needs after finishing working life; the cost of living with inflation and the expenses involved in housing are Many older people resort to this route to take advantage of what is generally their most valuable asset, their home., without this entailing the loss of its use. Therefore, this trend is expected to continue increasing over the coming years.

According to real estate expert Eduardo Molet, who specializes in bare ownership operations, This formula could grow more than 60% in the coming years aimed mainly at solvent local investors between 40 and 55 years old.

It is also an option for those buyers who are in no hurry to use the home and are looking for more attractive prices.

From the real estate agency Vivendex they point out that 47% of retirement pensions do not reach the minimum wage and 73% of widow’s benefits do not reach the minimum wage either. Taking into account that Spain is a country of owners, Retirees who own at least one mortgage-free home choose to take advantage of this asset to complement their pension. since the expenses associated with this stage of life can pose a serious financial problem.