Spain Property Prices in 2021; When will the fall stop and the rebound begin?
Like many others, you may have dreamed about owning a property in Spain and enjoying the relaxed lifestyle, magnificent cuisines and the great Mediterranean weather. While the pandemic has caused a lot of pressure on financial markets and the economy and even considering the Brexit taking place starting 2021, this year we will mark record low property prices in Spain and is worth taking a deeper look. So think more about your dream as this year it might become reality while also being beneficial from an investment point of view.
While according to Standard & Poor’s report on European property prices recorded one of the largest drops in between EU states for Spain, it has also predicted a rebound in 2021. This year, many regions in Spain are seeing price drops similar to those of the last financial crisis which is mainly caused by the travel restrictions imposed due to the pandemic and the effects it has had on tourism and investor travels.
While the real estate industry is adjusting to the situation and many of the sales are taking place through virtual visit and certifications, a bounce back is expected to happen this year but it varies based on region. According to a report published by Caixa Bank (Largest banking group in Spain), only a few provinces will see a rise on the prices this year and others will see more price drops until the second half. One should take into consideration that these are revised estimations from the mentioned bank which were adjusted from the previous more optimistic figures putting most provinces on the rising front on 2021. As an example, while Madrid is predicted to see a 0.8% increase in prices this year, Barcelona is estimated to continue with another 1.1% downwards.
With the vaccination in full force in many of the world nations and the hopes of a global immunity, our prediction is also forecasting the low point of the market to happen during winter to spring of 2021 and depending on the region and restrictions easing, we will see stability and slight increase in the market as we more further towards the end of 2021.
Taking these into consideration, with all that is going on in the world, I recommend you stop and think about how your dream could be very close and actually within your budget limits this time. Many real estate firms such as Alta Moderna now have numerous appealing listings with great prices satisfying the most demanding clientele while also managing an investment fund for those who are serious about earning more from their investment.
Our recommendation is always to have a legal professional throughout the process checking all due diligence and ensuring all the details are known when making a real estate purchase in Spain whether or not you decide to do it virtually. And Stay Safe!
