Unprecedented times like this bring insecurities to the market, making people more cautious when deciding to buy or sell their properties. Properties in Spain, especially on the Mediterranean coast, are in great demand not only among retirees but also among people looking for an alternative investment.
This could indicate that prices tend to remain stable, however the COVID-19 pandemic has affected the Spanish economy and with it a reduction in real estate market prices is also expected. Standard & Poor’s forecasts one of the largest price fluctuations in a year, from a 1.4 % drop to a 4.5% increase by 2022.
Nobody can determine the perfect time to buy a property, in other words, the perfect time is rather luck. Smart people know this and play within the safe zone. When prices have already fallen and the expectation is that they will rise again, it is a good time to buy.
It is important to note that well-located real estate properties in Spain have not shown significant price reductions after the lockdown of the coronavirus and according to real estate companies it is unlikely that they will have significant discounts in the medium term.
Miguel Laborde, founding partner of Laborde Marcet, advises investors with liquidity to buy properties now. He adds that this is because “the recovery is going to be in U-shaped and prices are not going to fall any further.” It is important to bear in mind that this financial crisis in Spain will not last as long as the 2008 recession lasted.
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