The luxurious Spanish properties
attract a huge number of foreign investors and expats every year. However,
similar to all the other industries, the real estate market has experienced
several ups and downs due to the unprecedented coronavirus pandemic. As the
industry was frozen for more than three months, you may witness a fall in the
prices of second-homes.
The good news is, the Spanish property
market isn’t as vulnerable as it was in 2008, newly built homes presents a
smaller share of the overall market and people have been quite cautious with
lending. For such reasons, the demand for residential property in the northern
and southern regions is not at much risk of drastic correction and it is
expected that things will pick up again, gradually, when everything comes back
Will the Spanish property market still
rise despite COVID-19? Is buying a property in Spain still a viable option?
Continue reading to obtain a clear understanding.
The short answer is yes. According to
the European Commission, the Spanish economy is expected to grow by 1.9 percent
in 2020. The unresolved issues and coronavirus risk factors might affect the
global economy, in Europe and all across the globe but the Spanish real estate
market still has the upper hand and yet grow again after a few months. The
properties in Spain are newly constructed, surrounded by basic amenities and a
great atmosphere, thus, you will always have some advantage over other
Everyone accepts the fact that a
luxurious villa in Ibiza has no comparison to a small apartment in Benidorm.
Therefore, prices may vary depending on the region and property market
scenario. Given that the COVID-19 crisis hasn’t left the property market
behind, you will see a slight drop in second-home prices so you can consider
investing in second-homes now to earn good returns in the future.
Due to COVID-19, markets were put into
strict lockdown but over time, confinement measures are relaxed but during
those times, the Spanish economy was adversely affected in terms of tourism and
foreign property buyers. In mid-March to early April, purchasing a property was
way far from everyone’s minds but now since the COVID-19 curve has begun to
flatten, online searches have increased.
The real estate agents are showcasing
the property with 360-degree virtual tours to clients who aren’t physically in
that particular area or feel vulnerable when out in public. As a result, many
buyers are inclining towards affordable deals and agents are enjoying a rebound
in queries. There is no denying that areas’ good climate, diverse culture,
magnificent beaches, and high standard of living are motivating factors for
buyers even during a pandemic.
The COVID-19 outbreak has brought a
massive shift in trends, in terms of home and working environments. After
spending a lot of time inside, people are going to give more value to private
outdoor spaces like a garden and pool. Buyers don’t need to be concerned about
being safe as stringent rules and recommendations are implemented to maintain
hygiene in all environments, increasing confidence and trust in visitors or
We believe the demand and overall
appeal of the property market in Spain will gradually return to its regular market
activity very soon. You can expect a decline in prices, however, it depends on
what you are seeking and where you are looking. You can talk to our experienced
real estate agents to make a rational decision and buy a favourable