The Spanish real estate market had recovered very well since the 2008 financial crisis and has also been very robust and stable in recent years. In 2018, it grew again in succession and 2019 was also an excellent year to fulfill his dream of an immobile in Spain. The industry had a number of reasons to look positively to the future – especially as healthy growth was emerging and there was no real estate bubble with completely overpriced properties on the market.
Healthy growth through March
At the beginning of this year, it looked as if the success story could continue in 2020. And then, yes, Corona came with Covid 19. Measures to contain the virus have shaken the market in Spain, with property sales suspended and visits no longer possible. The market for office and commercial real estate has come to a standstill in recent weeks and investment funds have also been hit hard.
Many who had already bought their property no longer came to their newly acquired houses – neither in Spain nor in other European countries. And yes, it will also take some time before there will be any more travel restrictions across Europe.
However, this has nothing to do with harassment or expropriation, but simply with the exceptional situation in which we are all find ourselves. It is important to keep calm and to be a little patient now. Good thing wants to have a while.
But every medal has two sides. In this case, the buyer and seller pages. Although investment is expected to be slow for a few months, the industry is optimistic that the market will recover well in the medium term.
Real estate gold as collateral
“We are optimistic about the future. On the one hand, because the market was quite upmarket before the health crisis erupted, and on the other hand, because real estate is always a safe investment in times of crisis,” says Julia P. Manzau, Marketing Director of Sol Bau Denia Immobilien SL. “In addition, those who had the air before Corona to invest have this to go to Corona,” adds Managing Director Peter Patzak, perhaps on very different terms. “There is currently no reason why investors should abandon their pre-crisis plans.” On the contrary, in the crisis, money can be made with real estate as well as on the stock market.
Meanwhile crisis-ridden Spaniards
Crises are not new to Spain. Even if the shocks are felt worldwide this time around, the Spaniards have learned a lot from the earlier turbulence to cope with them: “When the peak of the difficulties is over, the recovery is always particularly dynamic,” recalls Patzak, who has worked successfully in the real estate industry for more than 20 years. “On the contrary, I think that whether the volatility in the financial markets and the associated uncertainties, the low interest rates, real estate as an investment are always very interesting.”
Time for bargain hunters?
Yes and no! In times of crisis: Cash is king. If you have enough money on the high edge, you don’t have to sell. But if you have enough money on the edge, you can buy now – and take advantage of opportunities. A property worth its price, however, will not be squandeed by anyone without need.
Unlike in 2008, this crisis did not arise from a bubble. As soon as travel is possible again (see X), visits from abroad will be possible again. “However, we do not expect this before autumn 2020. Currently, we have a lot of enquiries and are already in the starting blocks for our customers,” says Julia Manzau. It expects that the last two quarters of 2020 in particular will be much better than the first and second quarters. “The industry expects the recovery to continue in 2021, as the economy grows by more than 3.5 percent and the real estate market returns to an expansion phase.”
Therefore: Secure your place in the sun and one of the most beautiful on the Spanish coast: the Costa Blanca.