A brief overview of the evolution of the real estate market in Spain and any investment possibilities in my experience.
I have known Spain since I was a child, from Tarifa to Figueres, spending holidays in Costa Brava and Costa del Sol and I can tell you that I have already seen crisis of real estate market in Spain but also price shoots.
On my terminal I saw alarming data coming not only from all over Europe but especially from Spain, experts predicted a fall in house prices between 6% and 15%, it is true that Covid 19 has sown terror all over the world however these seem to me important numbers.
Compared to 12 years ago when real estate market prices in Spain had posted major losses, a slower recovery is now expected given GDP’s data -12.5% in 2020.
The website www.idealista.com (the largest sale of the real estate market in Spain) found price drops in the regions most affected by Covid 19 such as Castilla y Leon and Navarre (-2.5%,-1.9%) and a drop in sales in April -70%.
Other experts talk of a collapse in house prices that at the end of the year will reach 12%, it must be said that coronavirus arrived in the middle of the filming of the real estate market in Spain after subprime bubble 2008.
So what to do if you want to invest?
Personally I keep monitoring prices, I explain my simple recipe:
- I go to the platform for example zillow.com(Usa) or www.idealista.com (Spain)
- I select the region of interest most likely to rise
- Select 5 properties at most
- Weekly focus on any price changes
- On the internet I control the developments and opportunities of the city (new industries, bike lane, infrastructure)
Once you have done the scan (3 hours a week in my experience), you have to constantly study prices’s evolution, regarding the real estate market in Spain I selected some regions.
The most interesting are the Balearic Islands, province of Malaga and Barcelona. This choice is motivated by tourism and the beauty of nature for example many retirees in recent years have bought houses near Marbella.
If you look for opportunities you will certainly find, Funcas also expects this year a 10% drop in prices due to low economic and employment growth. Surely the situation is complicated all over the world but I think the real estate market in Spain has recoveries in the coming years.
My advice for those who want to invest is to start working with in-depth research and not miss any investment possibilities, remember that the brick is great for diversifying and creating an annuity.
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