In 2021 6 reasons to purchase property in Spain!

After a few months of pandemic, the real estate sector in Spain gradually recovers. This is revealed by the Association of Registrars' Real Estate Activity Index (IRAI), which shows how, after an obvious contraction in the third quarter of 2020, property, transaction and mortgage indicators began to rebound (96.81). There are a number of reasons, however, why property can be purchased in Spain in 2021, despite uncertainties such as the coronavirus and Brexit when it comes to owning property abroad.

This is similar to the latest INE statistical statistics, which reflect the stabilization of home sales and acquisition in October 2020 at 37,000 transactions, well above the April, May, and June 2020 figures that have failed to exceed 27,300 transactions. للبيع

Nevertheless, despite this slight improvement, the immobilization situation is still very different than before the COVID-19 pandemic. While it is still too early to provide clear estimates, it all indicates that in Spain, the coming year will be decisive for the sector. This is especially true with regard to price adjustments, which have not so far undergone notable changes despite the initial predictions. Why is that so? That is because this indicator tends to lie behind the economic cycle and it will be only next year that real house price trends in Spain, especially as regards secondary or pre-owned housing, are beginning to be identified as a result of the coronavirus.

Alongside other developments in the sector, such as increased technological and digital services, changed housing needs when looking for a new house, the emergence of teleworking and increased interest in rural areas, this makes the first few months of 2021 the perfect time to plunge and buy a property in Spain. Let us take a closer look at 6 reasons for buying a property in Spain in 2021 with the help of the real estate experts at Solvia.

Good opportunities to buy a new building

Housing in central locations is much cheaper

Greater digital features to help purchasers

Housing in Spain remains a profitable investment asset

Low interest rates on mortgages

Second houses in dwindling areas

Good opportunities to buy a new building

Due to the pandemic, buyers in Spain are seeking bigger homes with outdoor areas like terraces or balconies, preferably detached. This can also include apartment blocks with more public services, such as gardens, swimming pools, leisure areas and more energy efficient homes. These are attributes that are almost always fulfilled in new homes and developments in Spain, though prices are not adjusted much in this case, and remain fairly stable. Furthermore, taking into account the increase of work from home in Spain, buyers will be able to benefit from the great opportunities presented by this market by buying properties in the outskirts outside the town center and the suburbs where the price of these properties is significantly lower.

Housing in central locations is much cheaper

There is also a choice to purchase pre-owned property at a great price and to carry out renovations for all those who would still prefer to live in a central location in the city and at the same time have enough space, natural light, extra rooms that could be used as home office, and even energy efficiency. The fact is, a price adjustment will be evident, especially in the area of used housing, and the imbalance between the two markets can already be seen. For the third quarter of 2020, the latest figures on the INE Housing Price Index reflect an increase of 0.8% in this type of asset (+7.5% for the new construction). Next year, however, Solvia's experts plan an adaptation of approximately 5% in the case of second-hand housing as well as stabilizing the value of new homes and developments.

Greater digital features to help purchasers

Intelligent market analytical tools, alerting services, filter usage, quality photos, videos and mortgage simulators... are just a few of the latest tools available for home buyers on the Spanish real estate market. All of these features facilitate and improve quality in housing searches and potential buyers can get a better understanding of a property when it comes to visual resources and avoid unnecessary trips.

Housing in Spain remains a profitable investment asset

According to the 3rd quarter estimates of Banco de España, real estate is one of the only assets that offers a remarkable positive return and still has potential for a boom in 2021. Although the yields due to the crisis have dropped to 5.6 percent compared to 6.8 percent before the pandemic, investment in property in Spain is still a valuable asset, particularly in terms of rental.

Low interest rates on mortgages

The Spanish banks' low interest rates for mortgages will remain in 2021 and will continue to be an incentive for wealthy purchasers to buy properties and take out a mortgage. However, in the current context of economic uncertainty, the banks continue to maintain their strict conditions to facilitate this type of concessions. Banks in Spain appear to be more stringent than ever in terms of mortgage requirements, in order to ensure that the applicant has enough financial solvency to pay off his/her mortgage.

Second houses in dwindling areas

The current recommendations for continuing social dissociation and seeking less crowded places have changed the perspectives of Spaniards in their selection of a place for their second home. Provinces and municipalities with smaller populations, located in areas where escape to nature is feasible and where there are lower rates of coronaviruses, are now much more valued in order to disconnect them or even work remotely. In addition to these factors, the adjustment of the prices of properties in these areas can also be excellent investments.

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