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Is it now a good time to buy a house in Spain?
How will the pandemic affect house prices in Spain? How is the property market developing in Spain and is now a good moment to invest in a house in Spain? Many people dream of buying a house in Spain and especially in this time the demand is undiminished. This immediately raises the question: is now the right time? There are many factors that determine what is a good time for you personally, but we want to go into more detail about the market development statistics here. We then also share our own vision and expectations regarding the housing market here in Spain.
Development of the real estate market in Spain
First a little bit about the real estate market in Spain. The graph below shows the development from 2001, the year that was taken as the basis with the index 1000.
Here you can immediately see the emergence of the real estate bubble that came to a head in 2007/2008. With the financial crisis, international house sales in Spain in particular almost came to a standstill, eventually reaching a low point in 2014-2015. At that time, the market started to recover cautiously and has since seen a healthy positive development. Below you can also see an overview for the different groups (per year) in figures from 2010. The property market in Spain for international buyers has been on the rise again in recent years, but has of course come to a standstill in the past year.
Development of real estate prices in Spain during COVID-19
We have briefly put the context of the real estate market in Spain into perspective and as we have looked at the past 10 years, we can also look back at the development of the real estate market in Spain over the past year. Of course, as everyone understands, this year has not been a “normal” year, as nothing has been “normal” since the COVID-19 virus appeared in Europe.
Of course, COVID-19 and the associated total lockdown and from August 2020 the negative travel advice for Spain, has had an impact on house sales in Spain from the international buyer’s market. We wrote about this earlier in July, about the situation on the housing market in Spain during Corona time. You see a response to the virus in the past year where some slight downward trends were visible. Finally, at the beginning of 2021, the market has stabilized again and found a new equilibrium.
Real estate market index figures 2021
Just a final overview of the figures from January 2021. Even though the prices have already risen by about 17.5% compared to the low point, the average price is still about 32% below the maximum in 2007, and on the Spanish coast even more than 39%. The market is currently still rising slightly.
Is now a good time to invest in a house in Spain?
Let’s come back to the question of whether now is a good time to buy a house in Spain? As you can see in the overviews above, the trend is positive and realistic. There seems to be an equilibrium at this point. Of course there are always possibilities of so-called “bargains” on the market, this is of all times. There are always situations of financial distress or illness, which force people to sell their property quickly, so that you can buy a house in Spain below market value.
However, on the other hand, we also notice a great need and an undiminished demand from people who want to buy a house NOW and want to come to Spain as soon as possible. For many, COVID-19 was a wake-up call not to delay dreams. You’re alive now, so we should enjoy it! Working from home has also increased in the past year, giving people more freedom in the choice of where this “home” is located. Working online could also be done from your Spanish casa. Furthermore, it is still cheap to borrow money and take out a mortgage.
Whether it is a good time to buy a house in Spain is of course always up to you. Look at the reason why you want to buy, check your finances and especially where and when you want to buy. Hopefully this information gives you some ideas about the price development in the housing market. We can also help you with more local information. Take your time and if you’ve decided this is YOUR moment, let us know your wishes. Whether you are looking for an attractive investment or are looking for a wonderful, relaxed life in the Spanish sun, the team of Dream Properties International is ready for you. We help to realize your dream in Spain! Contact us.
