Empty homes, liquidity requirements and negative Euribor are just some of the reasons why purchasing property in Spain in 2020 is a good idea.
If you think about moving to Spain or investing in a country's property, 2020 might be the perfect time. Alfa Real Estate experts expect the gap between what is requested and what is offered to be smallest in the next quarter of this year. The company notes, therefore, that the best time to purchase a property in Spain will be in November and December 2020. qatar sale
Since the outbreak of the coronavirus pandemic, overall Spain has reduced the number of real estate transactions by 24.4%. "Only the people who needed to buy a home did so," said Jesús Duque, Alfa Inmobiliaria's vice-president.
Since the containment and the progressive reactivation of the market "we saw a constant knockout of price cuts, we could make the ridiculous comparison of the Malaysian drop to explain that this situation actually hurts the positioning of the house in the eyes of the buyer who no longer knows whether or not the right price is right now" says the Alfa Executive.
However, the situation is very different in the coming months. As in other crises, for months, opportunities seekers have been searching for potential trade between the thousands of homes – and all sorts of real estate – currently on sale in Spain. "And in a very short period of time, they know that the gap between what is being requested and what is being paid for is the smallest in the next couple of years," Duque said. Many owners can no longer wait and have to adjust their expectations if they want to sell.
It should be noted that housing in Spain was close to the highest prices before the pandemic hit the world economy and was no longer attractive as investment. Six months after this situation began, the supply of real estate has exponentially increased, favoring the drop in the price of such assets and the purchaser's arrival.
There are reasons to think that the Alfa Inmobiliaria network will be very active in the last quarter of the year. These are the main reasons for the good idea of buying real estate in Spain in 2020:
There is a very large number of people and companies in need of liquidity. Regrettably, a deterioration of the labor market and of the economy as a whole has led to an impending need for many to cut costs and increase liquidity. And in this case, the sale of a property can save many lives.
There is an increasing number of empty homes because of the death of their inhabitants. The triste reality of the COVID-19 pandemic is that it is mainly targeting elderly people, which unfortunately has led to an increase in the number of homes where owners died recently.
Negative Euribor, which does not expect it to grow to higher values. This means particularly good conditions for the hypothecs currently being created, and also a price war to attract the most solvent customers with the greatest savings.
New housing emerges as a second hand housing competition. Although used housing has been the driving force behind the market, in recent years the supply of new homes has grown and buyers expect prices for previously owned houses to fall further.
Again, housing is a refuge. Duque says that housing has traditionally been our savings form in Spain and now "more so because of the shortage of investment options and the doubts about the future of pensions."
All the data show that the forecast falls are going to reactivate the sector with the entry of both domestic and foreign investment that are already looking for businesses in the retail and hotel residencies sector. "We think the end of the year will be the time when most of our operations are being carried out," concluded the manager of Alfa Inmobiliaria.