The Spanish Real Estate Market in Covid Times
Where there is a Crisis there's Opportunity!
There’s no denying the fact that Spain is a safe choice when it comes to real estate investments. Spain will still be a great market for foreign investors as the market won’t cease to grow.
According to TINSA the value of Spanish properties have experienced a 6.1% increase in general and the values closest to stabilization show an average of around 3% to 5% growth, located in Aragón, Castilla y León and Comunidad Valenciana during the first 9 months of 2021, even though the market was likely to drop due to the covid situation. Instead, prices have increased well above the average of previous years. As a comparison, the numbers in October 2019, just a few months before the pandemic, showed a 3.1% increase.
Whether it be because people have been getting very low interest rates on their savings, a pandemic eye-opener or any other reason. The year 2021 has clearly shown that many have chosen to invest their savings in Spanish bricks, which has proven to be a solid investment with an ROI that keeps generating a steady yield. Also, covid may have pushed people into making investment decisions rather sooner than later, spending their money now instead of sitting on their savings and watching it evaporate the coming years. Even more so with an upcoming inflation that is soon to hit our economy hard as announced by the ECB and already noticable.
Spain’s leading banks: Bankinter, Solvia, Caixabank and the College of Notaries and forecasts of the Spanish Association for Value Analysis, point at 2 - 5% increase in new housing and 6% in used houses for 2022! No better way to be more certain than checking the statistics.
Bottomline... knowing when to invest next is key!