Coronavirus And The Effect On The Spanish Real Estate Market
It’s not the same as the property crises
During the property crises 12 years ago, house prices in Spain dropped by around 40%, the lock down is completely different therefore there is no reason to expect any similar price drops as a result of Coronavirus. Now in 2020 the property and financial markets are a lot healthier, the long term debt of property owners is much better with interest rates at an historically low. When will it recover? Economist Raf Jacob expects that the real estate market in Spain will recover shortly after the pandemic situation improves, but we will have to adapt to the new situation. Forget your reference points!
Economic uncertainty will equally urge some owners to sell adjusting their price expectations accordingly. While a buyer or investor may be prepared to wait, others may sell non-essential assets like a second property or one that are being rented out, as both are not essential.
Some young buyers who have a stable job plus some savings, such as many expats here in Spain, have access to a mortgage. This group of young people buy sooner during and right after a crisis.
Rely on online tools
This is the time to maintain your online presence and spend some time on your social channels. Prepare your company for the future for when the lock down is lifted, put yourself in the best possible position to take advantage of the market for when the lock down is lifted.
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