Whether you wish to purchase a second home, spend your retirement, or invest in a rental property, the investment in all regions of Spain may appear to be a fascinating deal. With endless natural and magnificent landscapes, transport networks, and leisure options, the market offers a diversified choice to incredibly meet the specific needs of investors.
It is no surprise that the corona virus pandemic has been a massive disruption for the real estate sector as well. Therefore, it becomes important to debate whether or not it is the right time to invest in the Spanish property market. While such uncertainty continues to affect buyers, sellers, and investors' mindsets in 2021, it is expected to see a slight increase in foreign home sales due to low prices.
Let’s dig into a few crucial aspects to understand the true scenario of the Spanish property market in 2021.
According to Idealista, the average cost of Spain property is estimated at €1779/m2 at the beginning of 2021. Well, this number is 0.9 percent higher than an earlier year. Alongside these factors, the local real estate has managed to maintain its valuable position even in times of crisis. However, not all regions have witnessed a positive scale but still many have successfully maintained 2020 prices to a great extent. The resort regions in the south and east have slowed down a bit in terms of pricing.
The pandemic has forced people to stay away from bustling cities to reduce the spread of the virus. Many people have decided to live in less busy cities and properties that are equipped with a terrace, more light, panoramic views, and standard amenities.
According to the Fotocasa portal, the beginning of the COVID-19 outbreak in Spain has resulted in a drastic increase in demand for rustic farmhouses, villas, and adjoining houses. Also, some have purchased homes to study or work remotely in a calming environment. The increased domestic demand and rising construction prices have allowed local real estate to survive in difficult times and the average prices don’t decline.
Many homebuyers have to cancel property deals due to uncertainty and thus, locals and foreign investors opted for renting housing options. According to Idealista, the number of rental housing listings has increased by 63 percent as many people postponed the home-buying process for a while and opted for rent for peace of mind.
Due to the economic crisis of COVID-19, property prices will reduce in nearly every housing market and it might come back on track in the second half of 2022. The positive view is that since property prices are low and real estate professionals are following necessary preventive measures to meet the needs of home buyers, this could be the right time to buy a home of your dreams where you can live safely and enhance your quality of living.
If you want to obtain more information about the Spanish property market and housing options, feel free to reach out to our experts. We’d be glad to assist you!
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