House prices are still 1% higher than last year
How much decreased the prices of the properties in 2020 ?
Most of the economic researchers believes that spanish homes will lose about 13% of the price this year. Contrary at the moment, the situation looks as follows ( June 2020 ): the average cost per m2 of housing in Spain 1.730 €/m2, which is 1% more than in June 2019 and the rental prices are 4% more than last summer.
In other blog you can read about The Property Market in Marbella in 2020 – the effects of COVID-19
What type of customers are buying now ?
1. Those who already agreed the deal, but due to the lockdown were not able to sign the contract, they want to close the deals as quick as possible before the predictable possible restrictions. 2. Investors, who are already suffering losses in other financial investments. They are quickly moving to the property market as safest place to place the money. 3. Bargain hunters, specially searching for price reductions and try to reach discounts.
How will shrink Spain's economy in 2020?
In its latest World Economic Outlook, released on October 2020, the International Monetary Fund (IMF) predicted that the Spanish economy will shrink by 12.8% this year, the biggest contraction of all advanced economies. Spain ranks 17th on the global list of biggest drops in gross domestic product (GDP) because Spain is extremely dependent on tourism. As for 2021, the IMF expects Spain to grow at a faster rate than the euro zone as a whole 7.2% compared with 5.2%.
Who is buying property in Spain ?
On the spanish coasts foreign buyers are representing 18% of the total buyers in Spain. Until Brexit the british buyers were the mail buyers (14%). Property Registrations Office shows an important growth in properties purchased in Spain by other European citizens, like Scandinavians, Belgians, Dutch, French and Germans.
What are the house prices € m2 by regions in June 2020/2019 ?
- Balearic Islands 3.105€/m2 (+4,2%)
- Madrid 2.783€/m2 (-1.4%)
- País Basco 2.597€/m2 (+1.4%)
- Catalunia (2.226€/m2 (+0,1%)
- Islas Canarias 1.854€/m2 (+3.2%)
- Andalucia,Costa del Sol 1.646€/m2 (+6%)
- Alicante 1.596 €/m2 (+3,8%
Should I invest in housing market in Spain ?
Property investment appears a safe place of the money, the banks offer low interest mortgage rates and most of regions in Spain the prices are stable despite of the Corona virus crisis. In Andalucia the coastal area, in Costa del Sol the figures shows again that the investments in this region are safe, the famous Marbella, Puerto Banus and Nueva Andalucia, Benahavis and Estepona still are very popular among the buyers.