Corona crisis leads to falling prices for existing and new buildings
, according to industry expertsThe ongoing economic crisis due to the Covid-19 pandemic is leading to a fall in prices for existing and new-build properties in Spain, according to industry experts. And this is also attracting more and more bargain hunters. The supply is cheaper than it has been for years," says Jesuacute's Duque, vice president of the national brokerage Alfa Inmobiliaria. He believes that right now is a „very good moment“ to invest in a residential property in Spain. „The gap between supply and demand has grown extremely since the outbreak of the corona pandemic“. The reasons are manifold.
Increasing liquidity needs of owners lead to price collapse
Sad, but true. „The number of people and companies in need of liquidityin Spainis very high. Unfortunately, the deterioration of the labor market and the economy in general has meant that many people have an immediate need to cut costs and gain liquidity. Selling a property in this case can be a lifesaver for many“, said Duque.
Tödlicher Virus: Covid-19 lässt viele Immobilien verwaisen
„The sad reality of CoronaThe main feature of the coronavirus pandemic is that it mainly affects older people, leading to an increase in the number of properties whose owners have recently died.Their heirs usually try to dispose of the properties as quickly as possible. However, this is currently only possible with favorable prices“.
Favourable mortgages due to low Euribor
„The Spanish real estate market is also gaining ground due to the continued negative Euribor and theperspective that he will notwill increase, it will become less attractive to potential investors. The current situation has ledto particularly favourable conditions for mortgages and a price war between banksand a price war among banks.“
Growing supply of existing properties drives down prices for new builds
„Despite the fact that existing properties continue to be the driving force behind the market, the supply of new-build properties in Spainhas increased in recent years. Dthat meansin the current situationthat potential buyers of new-build properties expect that prices will fall.“
„The situation on the real estate market in Spain is currently more favorable than everfor investors. As in other crisestimes, for months now, snoopers have been watching the market in search of good deals among the thousands of properties - and all kinds of property assets - currently for sale in Spain. „They know that in a very short time the gap between what is being asked for a property and what is being paid for it is getting narrower“, explains Duque. Many owners cannotwait any longer
and have to adjust their expectations if they want to sell.
