Is real estate prices expected to fall in Spain in 2021?
If you are planning to buy a house or apartment, you have probably wondered more than once whether to expect a reduction in property prices in 2021.
Our answer is most likely not.
When in Spain a quarantine regime was introduced and the country's economy rose, and many speculations immediately arose as to how the Spanish real estate sector would behave. It was expected that as the borders gradually opened, prices would begin to decline. They predicted discounts of up to 30, 40, even 50 percent, in other words, that housing can be purchased PRACTICALLY FOR FREE!
However, in reality everything is somewhat different. The current crisis is not caused by another economic cycle, but by a pandemic that is slowing down economic development. That is why its decline is temporary and depends solely on when the spread of coronavirus infection will be controlled. As a result, the prevailing view is that real estate sales prices should not be reduced until the end of the pandemic is possible.
In the last trimester of 2020 the most active in the real estate sector was celebrated in the Valencian community. In particular, from October to December, 3.28 purchase and sale transactions per 1,000 people were registered. Leading positions in this regard are Alicante and the Costa Blanca, where the value reaches 4.09 per 1,000 people.
Interest in buying a home on the coast is very high, especially among foreigners who are not residents of Spain and have made a firm decision to move to this country permanently due to the pandemic. At the same time, it is expected that after the lifting of restrictive measures, supply in the real estate market will decrease, and growing demand will lead to price increase of 20 percent.
The implementation of vaccination plans throughout Europe stimulates the economy as the pandemic draws to a close. Technological progress also plays an important role. Thanks to videos and virtual tours, customers can get acquainted with the objects real estatewithout leaving the living room of your own home. Many sales transactions are concluded remotely, which allows buyers to make a profitable contribution and thus anticipate the situation in the real estate market, which will occur with the onset of economic growth.
In conclusion, we note that the real estate sector does not lose its attractiveness to investors and today is considered perhaps one of the most reliable options. In a period when financial markets are highly volatile, more bets are placed on more conservative real estate investments until the economic situation stabilizes.
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