Spanish Real Estate Market 2020-2021
Spain is a reliable way to invest in overseas property. Statistics of recent years clearly confirm this. Therefore, many foreigners decide to buy property in the country, in Madrid, Barcelona, Valencia, Marbella or in any other amazing Spanish city. But will favorable conditions remain in the industry next year? According to Spanish real estate market professionals, next year Spain will continue to be a great market for foreign investors: the market will not stop growing.
After the crisis of 2008, the Spanish real estate market did not stop growing, and so far, in general, the last 3 years have still experienced a boom. The construction sector along with tourism are the main sectors supporting the Spanish economy. Even if the real estate market is experiencing a certain slowdown, this is not enough to make it investment unattractive.
According to official figures, real estate prices in the country for 2019 increased by 3.8%. That is, even with a slowdown in growth, prices will not decline for now, and the real estate market will continue to grow and offer really interesting opportunities for foreign investors over the next year.
If we ignore the situation with coronavirus and the temporary suspension of activity around the world, new construction is the main form of income for the Spanish real estate sector due to the recent maximum demand among foreign investors for new planned projects. Over the past 3 years, hundreds and hundreds of apartments have been built, which has led to the creation of new blocks, residential areas and shops. In general, new life is being created in areas that were previously almost deserted. And it is this type of real estate that will lead the economic growth of the real estate market in the near future, as soon as the world enters a normal rhythm of life after a pandemic.
Despite the fact that secondary real estate will also go up in price, it is new properties in new areas that will be in maximum demand. Such new areas represent a huge investment opportunity, as in the near future they will become new centers of life, hence the future price increase. Therefore, if you are considering Spain as a place for investment, be sure to check out any of these new emerging projects. Moreover, now in quarantine you have the opportunity and time for this, do not lose it!
As for Barcelona and Madrid, the two most tourist cities in the country, real estate prices and rental prices are very high, and the city can no longer grow due to lack of space. Thus, investing creates suboptimal conditions regardless of the reason for your purchase. The very high price of the secondary in the city is likely to not increase, and getting a decent return on investment will be difficult.
Most likely, Valencia will be the most popular option for investors 2020-2021. Valencia means excellent climatic conditions, delicious cuisine, a good coastline and much lower prices for living. Valencia is simply an ideal investment opportunity. However, Málaga or the cities in the country of Vasque (for example, Bilbao or San Sebastian) will also be ideal places for expats around the world. If you are not considering investing for future profit, but simply want to settle in Spain for a happy stay, then focus on the coastal areas. They are an ideal alternative for relaxing in the country. Valencia is not only a good place for investment, but also for life. It is impossible not to mention the equally optimal cities in the Costa del Sol. This is a great choice for many Scandinavians, French, Belgians and Dutch. And living in Barcelona and Madrid will cost much more. However, if you wish, you can find reasonable prices in the vicinity of both capitals.
Today, more than ever, technologies are actively developing; they completely transform many industries. So, in the near future we will be able to see all the real estate in Spain online on one platform, and the duration of the purchase process will be reduced to one day or even an hour, and the need for intermediaries will disappear. We are likely to see the first steps to such a future this year. For example, now in the quarantine period, many buyers are considering online options for a future acquisition in advance. Technologies in the near future will change the entire real estate sector, not only in terms of sales, but also when it comes to construction, management and leasing. Therefore, if you plan to buy within the next year, be sure to start conducting your research online.