The real estate market across the country is expected to see a price decline that could benefit buyers. 2021 may present itself with a good handful of buying opportunities at prices lower than what we were used to in recent years. The real estate market had been experiencing an uninterrupted price rise since 2015.
Although many owners without urgency to sell have resisted lowering prices, the drop began to materialize in 2020, and according to Tinsa it was generalized in all autonomous communities. The appraiser figures the fall in prices over the past year in Madrid (-6.3%) and Barcelona (-5.8%) at more than -5%, and more than -10% in La Rioja (-20, 1%), Castilla y León (-11%), Extremadura (-11%), Aragon (-10.4%) and Andalusia (-10%).
The real estate market in Spanish capitals has turned upside down due to the Covid-19 crisis. Wherever house prices rose, it is now possible to find deep discounts; and rents, previously at highs in Madrid or Barcelona, are now experiencing historic drops.
It is important to take into account the different forecasts that exist in the housing market in Spain. According to Bankinter’s Analysis department, which estimated the price drop in 2020 at -4%, the decrease during 2021 will be around -5%, and will be greater in the prime areas of large cities.
Some analysts consider that the price decrease can be up to almost -20% between March 2020 and December 2021; others, however, do not consider that the price drop will be significant from now on.
What they do agree on is that, depending on which areas, interesting prices can already be found; and, except for the most daring, they advise buying if a good offer is found that meets the requirements that are sought
The reactivation of the economy also suggests a short-term appreciation of the properties that are purchased at this time, as the economy grows. It also allows to see good opportunities.
Very much to take into account at the moment is the fact that there is an increasing demand for housing with a terrace, large balconies or if the land and the price allow it with gardens. This change in demand is another consequence of the pandemic. Also in a good part of these promotions you can find this variety of offers.
The second home market continues to perform well, whether it is for luxury single-family homes or multi-family developments. One of the most attractive options in this case is when looking to invest in areas near the beach, such as La Manga del Mar Menor.
Having made the decision to get a home on the coast, emotion can lead to wanting to reduce excess times. However, before buying a house on the beach, it is advisable to be clear about the objectives of the operation, starting with determining whether the intention is to convert it into a home for own use or if, on the contrary, it responds to the interest of making an investment.
The real estate sector on the coast boasts good health and it is no secret that many investors find the Spanish coast an interesting focus of attraction. Buying a house on the beach generally offers a return that is difficult to match in a low interest rate scenario.
The beach destinations are also synonymous, regardless of the current circumstances, of economic activity, tourism, employment and investors, so that, in practice, buying a second residence on the beachfront would entail less risk.