By choosing I Accept, you consent to our use of cookies and other tracking technologies. The Spanish Government predicts a 7.2% rebound of GDP next year following a fall of 11.2% in 2020 due to the pandemic global crisis, in line with the Bank of Spain projected growth of 5% in 2021 and 4% in 2022. Due to european coronavirus funds this increase could even be higher with  more than 25 billion euros initially injected in the Spanish economy, rising GDP to 9.8% in 2021. — Property Prices in Barcelona, Madrid, Valencia, and more… Central banks around the world will favour special financial conditions while inflation remains low, due to lack of consumer expenditure. Spain’s housing market is now close to being balanced after being massively oversupplied. There are several key players whose actions directly impact how the real estate market evolves. I was wondering if you could let me know whether there may be a restriction in size when renting out properties in future. The Spanish real estate market will attract more than 9.2 billion investment in 2021 Jenny Pizarro • 15/12/2020 The segments that will be most strengthened will be logistics , offices and alternative assets such as student residences and retirement homes. Especially when taking into consideration the reduced total cost that relying on an online platform presents. But with this new boom we have been experiencing during the past couple of years, they came to life again. In combination with the low interest rate, many loans for the purchase of a home will be granted in 2021. We must bear in mind that, during the economic crisis, many areas that were about to start being constructed suddenly stopped due to a lack of resources and bankruptcies. Regarding domestic demand, the APCE (Association of Promoters and Constructors in Spain) has already put forward a demand to the Government, together with other incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4%. They are the ideal alternative if you are planning to buy a first or second (vacation) home. Do you know all the Spanish Property Taxes? You can find houses on the beach, apartments with a sea view and cheap villas in southern Spain, along the Mediterranean or any other costa that takes your fancy. Housing Index in Spain increased to 1619.60 EUR/SQ. And that boom can be especially perceived during the past 3 years. At the moment, Air BnB requirement in madrid is 28M squared minimum. This additional demand is expected to cause a price increase for these types of homes. Britons (14%) are the main buyers, because they settle in Spain after early retirement or as regular holidaymakers with a property to enjoy all year round. That is why many foreigners decide to buy a property in the country; being in Madrid, Barcelona, Valencia, Marbella or in any of the other amazing Spanish cities. Lower economic growth is expected within Europe. Therefore, Euribor in the eurozone will stay at negative values around -0.55% in the foreseeable future. In 2021 there will be some catching up for buying a house in Spain. What we recommend 100% in those cases, especially as we are talking about a really important economic transaction, is to rely on a real estate lawyer that can guide you step by step. Real estate market. We are not certain yet which will be the impact of the new Spanish government in regards to rentals. We use cookies and other tracking technologies to improve your browsing experience on our site, analyze site traffic, and understand where our audience is coming from. The global real estate market is experiencing a, So if you are planning to buy during the next year, make sure to. Like all of us, the Spanish real estate sector has experienced a turbulent year in 2020. Hence it’s the perfect investment opportunity. In 2008, the real estate market started to drop fast, and house prices decreased dramatically by 8% in that year. Madrid Office MarketView Q4 2018. view marketview . Therefore, investing in Barcelona creates suboptimal conditions no matter the reason behind your purchase: Hence, shifting your focus to other areas will be the ideal thing to do next year. Let’s dive deep into our, Spain will still be a great market for foreign investors: the market won’t cease to grow, New constructions as the fuel of the sector, Barcelona or Madrid may not be your best options, Coastal areas as the key zones if you are planning to buy a residential home, The real estate process will still be slow and there are still pitfall to avoid, And that boom can be especially perceived during the past 3 years. The process did not affect market prices during 2018-2019, so there’s no reason to think otherwise in the future. Due to restrictions on freedom of movement, much less money was spent in 2020, while incomes remained largely unchanged. — Spanish Real Estate Market. The economic situation is also more solid. Spanish homebuyers who have the financial scope to do so, have started to look for larger homes in the countryside. It is something common that any issue appears along the way that slows the process down (for example the builder getting in financial difficulties). Spain’s housing market is now close to being balanced after being massively oversupplied. UK citizens (followed by German and French ones), are the largest group of buyers of properties in Spain. Each year almost a million homes were built in Spain, more than in Germany, France, and England altogether. Cost of living. Although Spanish economic growth is still above the European average, this will not cause extreme price increases in the Spanish housing market. If the delayed demand for housing is caught up in 2021, more savings will be available to buy housing and house prices will rise as a result, according to the credit rating agency. Although the British market has been holding back waiting for the final exit from the European Union, the last election strong majority seems to be giving the so much needed confidence to the financial markets, as the rise in the pound showed immediately after the election result. Bargain hunters expecting to find special reductions on prices in some areas, as new properties add up to the ones already for sale prior to the coronavirus crisis, creating an excessive offer and the subsequent discounts. It’s completely understandable. You will experience noticeable improvements with proptech. During 2020 new constructions will still be the main type fueling the growth of the sector. There are different tax implications when you are buying, selling and owning a property, depending on whether you are a resident or non resident in Spain. But you can still go down following the Mediterranean sea and find equally optimal cities; especially the ones in, Forgetting about Barcelona and Madrid will be a good option if you don’t want to make your pocket suffer. Contact us to buy a property in Malaga! But you can still go down following the Mediterranean sea and find equally optimal cities; especially the ones in Costa del Sol. 14/05/2020 The construction sector in Spain seems to be moving once again. The preferences and needs of homebuyers have changed over the period of compulsory home stay. At very local levels in Spain, we can additionally speak … So if you are planning to buy during the next year, make sure to start doing your research online or through any of the newly created platforms that harness the power of data and algorithms. Nevertheless, this structure also poses several problems. Even though, Hundreds and hundreds of flats have been built during the past 3 years, leading to the creation of new blocks, residential areas, and shops. You’re probably looking to buy or sell a property in Spain. But if you are planning to buy a house in Spain, the process will be still slow (even though not as slow as it was before). The large international funds, which in the previous crisis funded massive purchases of portfolios from the banks, reversed the sales policy that they had until now and, due to the economic crisis that the coronavirus has brought. With online platforms such as Fotocasa or Idealista, the need for a real estate agent was nearly inexistent during the past years. Your email address will not be published. And that change will also be experienced in Spain in the upcoming months. They are a huge opportunity as they will become new life centers in the near future (hence experiencing an increase in prices for which you can capture a profit). Spain Real Estate Market Outlook 2019. view report . In addition, the financing costs are low. How is the perfect workplace for digital natives? And two of them are the one who sets the rule of the game: the government, and the ones that define how profitable your investment will be: banks and their loans/mortgages. So if you are considering Spain as your new investment location, make sure to check any of these new emerging areas. Some of the key points are: Weak global trading conditions continue to weigh on European growth, primarily reflecting a struggling manufacturing sector, but with far In the coming quarters the housing market faces a drop in sales, mortgage signing, prices and investment operations. Sea View Property for Sale in Cam de Mar. Spain Real Estate Market Outlook 2019. view report . Spain overview. Spectacular sea view estates for sale in Camp de Mar on the sought-after southwest coast of Majorca. There are several key players whose actions directly impact how the real estate market evolves. Larger houses with gardens located in outlying areas and apartments with large terraces will increase in value.The housing market moves slowly, it does not change overnight. The question, as far as the real estate market here in Spain is concerned, is the extent to which this cycle will be different from 2008. Find properties for sale in Spain by using the filters on the left side to refine your search. That is what we are going to explore in this article. In the period of 2007-2013, Spanish house prices had fallen by 37%. The fundamentals under the Spanish property market are much stronger than during the property crisis of 2008. In 2016, Mark Spain announced independence from his prior brokerage and formed Mark Spain Real Estate. Hence, it’s normal that they are the first destination for foreigners, and the destination they fall in love with and want to start living in. Therefore, Spanish real estate prices are only back to their level of 2004. Cost of housing. The Spanish housing market will therefore return to the picture of early 2020 in the short term, provided that the development of the pandemic continues to decline without another wave. For many foreigners, it is a popular destination due to its Mediterranean climate and thriving expat community. There was a demand for housing, but buying was postponed. If you are not considering investing but just want to settle in the country and find the best possible house, As we said, Valencia is not only a good place to invest but also to live in. Marbella’s real estate market has also felt the pressure as a result of the coronavirus crisis, as experts predict that the total volume of sales will crash by around 30 per cent, bringing it closer to the levels witnessed in 2012 and 2013. Housing Index in Spain averaged 1193.58 EUR/SQ. [Coronavirus Update]. The Spanish residential real estate market is competitive with the presence of property developers, like Neinor Homes, AEDAS Homes, Via Celere, and AELCA. Studies show that Britons were the top buyers of Spanish property across December 2019 and January 2020.. Will that trend still be true during 2020? The large international funds, which in the previous crisis funded massive purchases of portfolios from the banks, reversed the sales policy that they had until now and, due to the economic crisis that the coronavirus has brought. Barcelona and Madrid are the most touristic cities in the country. The tourist sector remains expectant to how the coronavirus pandemic will develop with the arrival of vaccinations in 2021. But the intention to reduce public debt may come in the form of implementing additional taxes to banks (which could make mortgage rates go up); or playing with interest rates. This report provides insight on the key trends that our experts think will affect the European property industry over the coming year. And two of them are the one who sets the rule of the game: the government, and the ones that define how profitable your investment will be: Hence, foreign investors will need to be up to date with what the Spanish Ministry of Economy does and strategize afterwards. 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