With falling house prices due to the coronavirus in Spain, could now be a good time to invest in property?
Living in Spain is a dream for many people, especially moving to the Mediterranean Coast, or to Spain’s Balearic or Canary Islands. Many invest in property simply so they can spend their holidays in the sun, while others plan to live, work or retire in Spain.
If you are thinking of moving to Spain, or at least considering buying or investing in property in Spain, you may be asking yourself if now is the right moment to do so. The instability of the COVID-19 pandemic may put people off, while on the other hand, falling house prices and the possibility of being able to work remotely in Spain could make this the perfect time to get a bargain and start a new life in the sun.
The economic crisis caused by the coronavirus, which has affected the housing market, is already encouraging investors and savers to seek opportunities in the real estate market in Spain. But is now the right time to buy property in Spain? Let’s see what the experts say.
- Buying property in Spain in 2020
- Types of investors
- Types of assets
Buying property in Spain in 2020
Miguel Laborde, founding partner of Laborde Marcet, advises investors who have liquidity to buy properties now. He adds that this is because “the recovery is going to be a U-shaped one and prices are not going to fall any further”. According to the real estate company, real estate assets in good locations in Spain have not dropped in price after the coronavirus lockdown and they are unlikely to register significant discounts in the medium term. It is important to keep in mind that this financial crisis in Spain will not continue for as long as the 2008 recession.
Types of investors
Miguel Laborde assures that there are two types of investors: those who have quickly returned to activity to take advantage of the opportunities offered by the market; and the reactive ones, those who adopt precautionary positions until everything is clarified with the consequent opportunity cost.
Types of assets
Looking at types of assets, real estate experts add that residential, commercial premises in good locations and hotels will continue to be safe havens for investment in Spain. Therefore, if you do have the capital and owning a property in Spain is part of your plan, then 2020 could be a good year to do it.
The real estate consulting firm stresses that the most important thing at the moment for the real estate sector is that banks continue to provide financing and mortgages at a good price, something that continues to be the case with the ECB’s monetary policies. “Investors can help, but the big movement is generated by mortgage financing. If financing is cut or interest rates rise, that’s when there will be problems,” concludes Laborde.