If you are thinking of, or are in the process of buying property in Spain, you may have asked yourself if this is the right moment to do it. The coronavirus pandemic has taken the world by surprise, breaking the moderation phase that Spain was entering with the purchase of properties, especially on the Mediterranean coast.
Spain, known for being one of the places with the best quality of life, is one of the most favourite destinations in the world for property investors. Owning a property in Spain is an aspiration for many people, specially along the Mediterranean Coast, Balearics and Canary Island, to spend their holidays in the sun, work or retire, or simply to invest in overseas property.
After several years of falling property prices in Spain, they were gradually recovering since the last financial crisis, but now, the Spanish property market, like the rest of the economy, has been severely shaken by the health crisis due to the coronavirus.
The crisis sparked by the covid-19 is already encouraging investors and savers to seek opportunities in the real estate market. The predictions are that property prices will be dropped but that impact will not continue for as long as the financial recession of 2008.
BUYING LUXURY HOUSES AT DISCOUNT
To buy a luxury property, you have to face a significant amount of money, and for this it is important to feel confident in the future. The luxury residential market is also predicted to suffer a discount in the price, between 10% to 20%, depending on the area and seller’s needs. The intention of purchase is expected to be reactivated as well, specially for european buyers, with the reopening of borders and with the control of the coronavirus.
RENTAL INCOME POTENTIAL: “BUILD TO RENT” TREND
A lot of people spend their holidays in Spain and live in Spain for a long stay by renting. This is a fantastic opportunity for those wishing to invest in buying a property. Demand is high and more properties are needed to cover this request. A lot of purchasers look to buy a property that gives them the chance of spending their overseas holiday as well as the highest possible return on their investment. With this potential income, the buy to let is a very interesting option to consider.
The coronavirus crisis has definitively launched the build to rent model in Spain. Rental of properties stands as the real estate asset that will come out of this crisis more reinforced. Despite the fact that the market expects an adjustment in the price, which will be moderate, the arrival of new investors betting on this product predicts a good future for rental in Spain. The interest in buying to rent was already very high and with the coronavirus health crisis, investors are reaching better negotiations with developers to reach agreements and be able to carry new transactions out.
THE TELEWORKING REALITY OPENS NEW OPPORTUNITIES FOR LIVING IN SPAIN
Teleworking gives a great peace of mind, especially in these moments. Being able to make your work day more flexible is great for those who specially have family responsibilities.
The international increase in favour of telework triggered by the coronavirus has created opportunities for the residential real estate sector. Teleworking is here to stay and will become an integral part of our way of life. At this time, a big number of foreigners are considering buying a house on the Spanish coast where they can spend most of their time while teleworking, and many of who already have a second residence in Spain, with the teleworking system, they are considering settling permanently residency in Spain. If your work company gives you the possibility to telework from wherever you want, it’s a great idea to have the chance to do it from Spain.
THE BENEFITS OF BUYING A HOUSE IN SPAIN REMAIN STRONG
If you do have the capital and owning a property in Spain has always been your dream, then 2021 could be a good year to do it. Buyers who purchase for the first time are increasingly looking to buy Spain. Countries with the highest salary find more affordable the purchase of a property in Spain and enjoy the holidays in Spain rather than in many other countries.
The cost of living is much cheaper than in other countries, as well as the rentals, so Spain has also become a great alternative not only for retired people, but also for young people who wish to establish here and live permanently. Actually, many developers are doing a big effort to show quality in their projects and are offering a product with higher quality to the buyers. You can find properties equipped with the latest technology combined with a lot of facilities, beautiful surroundings, etc.
Spain has not lost any of its fantastic attractions with this crisis. We are experiencing a global break but the wish to have a property, whether owned or rented, and our climate and lifestyle will remain unchanged. Crises have always been a source of opportunities, and this is what many investors must have thought, who already analyze the property sector for opportunities. This can also be your opportunity.
Related: Buying property in Spain after Brexit.
If you have found this article of interest, we recommend you download our free guide “How to buy your property in Spain safely”. Also, please contact by email at firstname.lastname@example.org, by phone at (0034)965717175 or via the online form if you want more advice for buying a property in Spain. We will be pleased to help you.