How will house prices in Spain be affected?
At the moment it may not be at the top of your agenda. The extent of the pandemic has taken most of us by surprise. However, we are now seeing a glimmer of hope in the newsreels. Some countries are looking towards relaxing their measures and after this current period of lockdown we expect that Spain will soon follow suit. So what can we expect from the Spanish housing market when this is over and will house prices in Spain go up or down?
The property site idealista suggests that in the short and medium-term there could be a drop in house prices in Spain from anything between 9% to 20%. However, the predictions are that the impact will not continue for as long as that following the recession of 2008. For some, investing in property during uncertain times is a better alternative than trusting in some other investment options that can be more prone to fluctuation.
A retrospective look
Throughout this pandemic, references have been made to the crash in 2008. There are, of course, many differences. However, the impact on the economy, we are pretty, sure will be significant in most countries and Spain is no exception. The months after we creep back into shared spaces will see people having to dig deep into their reserves financially. That, of course, is if they have them.
The Spanish government is keen to ensure that no one is left destitute as a result of the measures they have had to take. Numerous plans are in place to provide a minimum income for everyone and to enable businesses to stay afloat. This aside, however well these measures work we can expect to see a drop in confidence and some businesses will find it impossible to recover. As such, we can expect the construction industry to have a set back and house prices in Spain could fall because of this too.
For those who are wanting to sell, this is not perhaps the best time to do it. Sellers will have to drop their asking price and even then there may simply not be the people out there buying. We could see something approaching this in the coming months.
A good time to buy
Of course, this means then that it is a good time to buy. If you do have the capital and owning a property in Spain has always been your dream then 2020 could be a golden year to do it. If you are British there are added incentives for completing before the end of December. We know what the requirements are for people at the moment but the future, post January 2021, is less certain.
It can also be a good time to change property in Spain. The price of your existing property may be down, if house prices in Spain have fallen, but at least you will be able to buy for a reduced amount too. Of course, this is dependent on finding a buyer. This applies whether you are considering upsizing or downsizing.
If you are a potential investor, looking for something that will give you a return in the future, then buying a Spanish property while house prices are low should be on your list of possibilities. It is likely that there will be low interest rates for some time and anyone who does have money to spare should consider alternative means of investing it. Buying Spanish property could well be one. The rental market is strong and now is the time to snap up bargains which could prove to be attractive to rent in the future.
At the moment it’s to stay safe and follow the advice that your country is giving you. However, there is no harm in taking a little look online at what’s available and our customer care department, working safely at home, are more than happy to answer any questions you may have either online or by phone.
At some point this tragic and challenging period in our lives will be over. With reduced house prices in Spain this could offer a brighter future for potential buyers.