Parts of Spain see a price increase during Coronavirus!

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Posted and filed under Legal Issues in Spain.

covidproperty

Irish buyers are bullish about buying property in 2020.

Two interesting surveys came out over the past two days and they are very positive! Let’s start in Ireland with the survey of almost 2,000 people, carried out by property website MyHome.ie.

As a result of Covid-19, according to the recent survey, the large majority of prospective homebuyers are still planning on purchasing a property in 2020. Coronavirus presents an opportunity to the majority of those surveyed.

Two thirds of respondents said they believed 2020 would be a good time to buy property, and we assume the same applies right here in Spain. It is true that over a third are waiting, believing prices of property will drop by over 10% in the next 12 months. We can see some of that already here, with builders, developers and even private home owners open to taking offers in order to shift their properties. It is very encouraging to see that 68% of prospective buyers are still planning on buying a new property in the next year.

Recent analysis by the Economic and Social Research Institute suggests that if the economy faces a “sluggish” recovery in the months ahead, house prices could indeed fall.

We are sort of prepared or even resigned to this over 12 months or so.
If Ireland, Spain or indeed Europe enjoys a v-shaped recovery from the Corona virus crisis, a rapid decline and a bounce back, house prices everywhere could, by the end of next year, return to the level they are now.
33% of respondents also said an easing of mortgage lending rules will make them more likely to purchase a house in 2020. Will the Spanish banks listen?? We don’t know, but UCI mortgage brokers tell us that they are very busy finalising mortgages for their expats clients in Spain.

Due to the ongoing Covid 19 restrictions, 51% of property buyers believe online viewings and virtual tours are effective ways to view a property. This is even more true in Spain, with Adam in SpanishHomes.online telling us he did a virtual viewing that led to a sale only yesterday (June 2nd).

59% of property buying respondents believe Coronavirus will lead to more online processes in general (legal, tax, conveyancing) to minimise unnecessary contact. Meanwhile Idealista, the Spanish property portal says prices are rising in the Balearics, with a .5% increase in May. There is a limited amount of property for sale on the islands so I guess it is the place where we should see the bounce back more quickly.

Nationally the price of Spanish property dropped 1.3% due to Covid 19. Fernando Encinar, the head of studies at Idealista expects a rapid recovery and return to pre Covid prices in 2021. Now really is the time to buy a property in Spain!! Encinar said interestingly that the amount of property for sale in Spain will increase due not just to the obvious issues people are having economically but also due to increases in numbers of divorce, separation and inheritance. It makes sense of course.

If you need help to get your property sold or you are in the market to buy a property in Spain, Spanish Solutions can help to make sure you do it legally and in a tax efficient manner.

(We saw an example of a current bargain for a 4 bedroom property with pool on a large plot in this area for 189,000€ on Spanish Homes Online on facebook just this morning)…

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