With the fall in house prices due to the Spanish coronavirus, could this be a good time to invest in property?
Living in Spain is a dream for many people, especially moving to the Mediterranean coast, the Balearic Islands, or the Canary Islands. If you are thinking of moving to Spain or at least considering buying or investing in properties in Spain, you may be wondering if this is the right time to do so.
The economic crisis caused by the coronavirus, which has affected the housing market, is already encouraging investors and those with savings to look for opportunities in the Spanish real estate market. But do you think it is an appropriate time to buy property in Spain? Let’s find out!
2021 can be a good year for the real estate sector
Experts agree that, despite the crisis, demand for housing will start to rise throughout 2021, and prices, now up to 10% lower, will gradually adjust again.
That’s why many people on the ledbox are wondering if now is the right time to invest in housing before prices return to figures similar to those of 2019.
And it is that the current situation has changed the preferences of buyers and, after the closing days, many are considering the option of buying a new house to adapt to their new needs (with more windows to the street, with open spaces such as terraces or balconies, with more versatile rooms or additional rooms that can be used as a workspace, etc.).
5 reasons why it is a good time to invest in housing
If you have been looking for a house in Madrid, Barcelona, Valencia or any other city in Spain for a long time, as many people from opinionesespana.es, now you can find good opportunities. Some reasons that can help you make the decision are:
1. Greater business opportunities
Moments of uncertainty and instability usually generate more movement in the real estate market. Some people decide to sell their properties to get cash and this means that we can detect better opportunities to buy an apartment or a house.
Our advice? Rely on professional advisors to help you find offers tailored to your budget and needs.
2. Growing sector
During the second quarter of 2020, the real estate market virtually stopped. However, in the summer we have already started to notice a return in this sector, with a total of 33,201 home purchase transactions recorded in August, which represented an increase of 6% year-on-year.
Some bet that these high numbers are due to operations that have been put on hold due to the coronavirus crisis, but it is also true that the demand for real estate is growing for two reasons: first, many people want to move; and, secondly, small and medium-sized investors already predict good opportunities.
3. Secure investment
The house is a refuge value because it is practically impossible to lose all its value from one day to the next. Although house prices may fall, they never do so as abruptly as stocks.
4. More profitable mortgages
Due to the crisis, interest rates are currently at historic lows, so we are in a good time to apply for a mortgage. Banks indeed ask customers for more collateral, but it is also true that they have to sell their products, so if you have savings or a fixed income, it is a good time to buy a home and get a mortgage term.
5. More new construction
Although after the crisis of 2008 the second-hand real estate market experienced its golden moment, the arrival of the coronavirus made us rethink our way of life.
This makes people consider new priorities when buying a home by new social habits. For example, telecommunications persuade many people to buy in smaller cities or residential neighborhoods, far from the city center and in new developments with larger apartments and green areas.