The Spanish property market during the pandemic

Spain is one of the most popular countries when it comes to buying property by foreigners. It is mainly due to the fact that it provides great weather all year round, beautiful views and a variety of attractions. Recent events have not changed much in this area. People are willing to buy houses in Spain more than ever since property prices have significantly fallen, which is extremely attractive to potential buyers, but less so to the sellers. Not sure if now is a good time to invest in property abroad? Read on to find out.

 

The impact of the pandemic on the Spanish property market

Are you surprised by the statement that now is the best time to buy property? Don’t be! The pandemic has forced property owners to significantly lower their prices. Potential buyers are good negotiators and according to data, propose discounts of ca. 5% to 10%. As a result, property owners agree to ca. 9%, which is still an extremely good bargain.

 

It is also worth mentioning that there is a possibility of withdrawing from the purchase at the loss of only part of the fee, which is an additional convenience. Sometimes, it is possible to recover the whole amount paid – this situation may take place e.g. if an investor comes to see a live view of a previously booked property and does not consider it worthy of buying. In general, this type of situation would not be possible - the refund of a reservation fee was implausible.

 

What type of property is the safest to buy now?

According to the surveys and wide variety of data, commercial properties, residential properties and hotels are the still among the most profitable investments. It is mainly due to the fact that the borders are opening and tourism is slowly coming back to life after a rough situation.

 

Are you reluctant to buying property because you think the process is much more complicated now? Nothing could be further from the truth. Thanks to technology, you may now book a property online, have an online meeting with a real estate agent and see the property. In addition, it is very easy to complete all formalities connected with purchasing property without having to visit Spain. Everything may be finalised while staying home and as stress-free as possible.

 

Some have compared the Covid-19 pandemic to the 2008 crisis. However, the scenarios are very different and the pandemic is far from impacting Spain as the economic collapse of 2008 did.

 

Mortgages and financing

It is mainly due to mortgages and other forms of financing that the property market is still quite strong as for the difficult situation we have all found ourselves in. Many banks still provide financing and mortgages at very good prices. Cutting financing or rise of interest rates would be problematic to investors and the property market. Therefore, now is the best time to buy property, since prices will not be lower and mortgages are more considerate than ever.

 

Jobs and general situation on the Spanish market

The property market and tourism are still among the most affected sectors due to the pandemic. It is said that as many as 77% real estate agents and people connected with this sector lost their jobs. The total number of unemployed amounts to 3,862,883, which means it increased by 0.13% over the previous month. On the other hand, many sectors grew a high demand for professionals e.g. the medical industry.

 

Moreover, according to data of various real estate agencies,transactions are estimated to fall by 25%. In addition, despite the complications related to Brexit and the pandemic, studies show that the British are still the top property buyers in Spain.

 

What to watch out for when buying property

Do not buy property on a whim. It is extremely crucial to check the credibility of the offer. Make sure to have a stable income, since the price of the property is not the only cost you are going to incurr. You should be prepared for paying for certain repairs, fees for utilities (water, electricity, gas Internet etc.). Take your time, spend your money wisely and be happy with a high return on investment.

 

 

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