Up date on the Spanish property market9th October 2020
Officially the summer is over in Spain September 22. A summer that we will remember for many years not only for the the high temperatures more over for the Covid and its implication for the country the tourist industry and for the property market.
After the country had been shut down for 3 month many thought they were going back to normality which we all know now resulted in a second wave worse that the first.
What did come back to normal was the number of properties sold in July. Actually the number was higher than July last year. But in a declining market it was probably merely a dead cat´s bounce, caused by a back lock from the previous months.
The uncertainty of where the market is going does not seem to have had an impact on the prices in coastal areas, yet. Nor have we seen a larger inflow of properties for sale although this is what we had expected. Normally we see clear signs when the builders start to offer higher commission for selling their off plan products but this we have not seen so far either.
However it is inevitable that the property market will not be affected by a drop in the BNP of more than 20% in the Spain in the second quarter.
The 'million Euro question' is by how much? A humble and maybe optimistic guess is 10%. Again all depending on how long we have to wait for a vaccine. Until then Spain puts it's trust in two merciful German women.
Looking at the bright side, things will get back to normal and despite of Brexit and Covid the Spanish property market, with corrections, will remain attractive for the European buyers.
Peter Thuesen, Director