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 to normal.
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 places.
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 potential buyers.
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 property seamlessly.
