News on the Spanish property market17th August 2020
Again we can guarantee warm weather and pleasant water temperatures. However, as important a few words on the market situation in the Spanish real estate market.
Many experts try to predict the outcome of the Covid crisis in the real estate market in Spain and the predictions are various. The present situation after an almost complete lock-down for 3 months is of course caused a drastic drop in the sales. This has lead also to a price drop in the second hand market. What we have seen so far is a drop in the prices on second properties that before the crisis were priced too high. The new build market has until now not reacted to the present and future crisis in the Spanish economy.
Though, there is no doubt that the market in general will see a drop in the prices. Again as before when we mention drop in prices there'll be a big difference between the national and the international market. The national market will be hit the hardest. This time there will also be a difference from are to area both in the national a well as the international market is concerned. For the time being it looks as if the north east of Spain and in the case of international market will be hit the hardest. Barcelona and the area around again suffering from hard restrictions.
The tourism industry being very hard influenced by the Covid will result in a much weaker economy in these areas. The Balearic Islands, Costa Blanca and Costa del Sol especially. As the foreigner are not allowed to travel or simply do not want to for a while means less demand and the lower prices.
Trying to predict some percentages as to what will the price changes is simply too difficult as long as there is no vaccine contra the Covid. One thing that most expert do agree on is that this crisis cannot be compared to the economical one we suffered 10 years ago. One of the argument for this is that the price level in the market is much more pain now than then. Though what is very difficult to predict is the impact on the work economy and then again where this will take Spain that before the Covid was just about to be out of last crisis the nan declining unemployment rate. The rate has risen dramatically since the outbreak and Spain is again at approximately 20%.