In 2021 property rates in Spain!

In the face of the coronavirus pandemic, predictions from property market analysts in Spain suggest that rates in Spain will fall, but in all cases not.  qatar houses

Will house prices fall in 2021 in Spain? Is 2021 a good time to invest in Spanish property? These are some of the issues that the people planning to move to Spain in 2021 are concerned about, but who have maybe stopped plans because of insecurities like Brexit and the coronavirus pandemic. When some analysts say that prices are falling on the Spanish real estate market and it's a good time to buy in Spain, we are here to send you the full picture of forecasts from experts on the Spanish real estate price market in 2021.

The development of the health pandemic would not always lead to falling prices

Stability and also price increases in new homes and developments

Significant effect on pre-owned Spanish housing

House rates in the summer in Spain

House prices in 2021 on the Spanish coast

The development of the health pandemic would not always mean falling prices

The imminent future of housing in Spain is related to the development of the pandemic in health and mass population vaccination. At a period of maximum volatility, the market expects to be unstable in the first half of 2021, while analysts are hopeful that the Spanish economic and real estate recovery will start over the summer.

Does this mean that in the coming months, we will see large drops in house prices in Spain? This may definitely be the case in many places, but not quite. The prospects for new building housing in Spain are much clearer than those for previously owned homes, according to property sector experts. This is a market that is likely to see higher price changes and is largely dependent on location and severity of the containment measures in the latest COVID-19 surge.

Stability and also price increases in new homes and developments

Most experts believe that there will be no indication that new buildings in Spain will become cheaper in the short term, though this form of investment has many benefits in Spain, given the current situation.

Mikel Echavarren, CEO of Colliers consulting company, says "Spain's new-build housing won't fall in price. Its better quality, the possibility to organize the purchase over many years and its better financing would allow the maintenance of current price levels "There was a mistake. The same approach is supported by Sandra Daza, Managing Director of Gesvalt, who assumes that the pattern we already saw in 2020 (when the prices of new technologies in Spain rose for ten years), at least in the first few months of 2021 will continue. Daza notes this "may be because new housing has better adjusted to the needs of Spaniards since the pandemic, providing more restrooms, wider terraces and an improvement in efficiency and specialization of community space and services."

Significant effect on pre-owned Spanish housing

Experts foresee more severe price increases in used or pre-owned housing in Spain, but not always in terms of casualties. Generally speaking, the venue, lock-outs applied in Spain for each area and the form of building will be the key factors determining price trends and the significant over-supply accumulated over the last couple of months.

"Spain's pre-owned properties expected price declines of 5–10 percent and behaviors between towns and cities, with declines in the areas most affected by the tourism and hotel crisis. In this context, falls by more than ten percent in some cities will coincide with increases in prices in others," says the CEO of Colliers, adding, "sadly, the effect on jobs affects temporary jobs, young people and lower incomes, and will thus not substantially affect solvent requirements in purchasing homes. As a result, the price effect is more focused on the homes of families who are forced to liquidate some of their properties because of unfavorable economic conditions "There was an error.

Latest idealistic forecasts also point to slowing down prices in Spain without excluding upward adjustments in some locations all year long, while real estate agents predict a stability scenario from mild to gentle increases. According to a survey conducted by Unión de Créditos Inmobiliarios (UCI) among more than 3.000 professionals across Spain, 42% assume that prices are expected to fall between 5% and 10%, while 29% expect to increase by less than 5%.

House rates in the summer in Spain

The arrival of the summer thus shapes the moment when housing prices in Spain will change. In this context, the Director General of the Institute of Economic Studies (IEE) Gregorio Izquierdo states that, this year's housing prices in Spain will be relatively diverse, so it is hard to talk about the sector average." He underlines that there can be 'important variations between goods, segments and places, even with different signs.'

One example of this is the predictions for Madrid and Barcelona and for other major cities with or more centered on the industrial sector with significant tourist industries.

"The most significant changes are that the sales prices for properties in towns such as Palma de Mallorc, Alicante and Malaga have dropped by 10% (or higher) relative to price stability and even rises in cities such as San Sebastián and Bilbao. Madrid and Barcelona suffer barely any noticeable decline in house prices "The head of Colliers emphasizes.

The tightening up of the steps to monitor the third wave of the COVID-19 pandemic directly has an effect on demand in Andalusia, the home of the historically dynamic and productive Costa del Sol. "In tradition, January and February, following hyperactive December, are the worst months of the year, but in Andalusia, for example, this year the number of appeals to visit a flat has dropped by more than 30 per cent. We will see what happens in March, the month when Easter and the summer usually mark the start of an important operation to sell and buy property "There was a mistake. The interest seems to be 'stand-by' for the Balearic and Canary Islands, anticipating the arrival of potential international buyers.

House prices in 2021 on the Spanish coast

The scenario for 2021 is still highly uncertain for homes located on the coast of Spain, which are characterized by demand for second homes, specifically for foreign buyers and expatriates.

The University of Barcelona's Gonzalo Bernardos remembers that "the season for buying houses in most locations on the Spanish coast appears to run from Easter to late September." Therefore, he considers that "2021 is already a lost season, even though 60% of the population is vaccinated by June," as "those who want to buy would have insufficient courage to do so this year."

Sandra Daza further emphasizes that "the pace of foreign demand reactivation will be a decisive factor in consolidating price recovery by the end of 2021." And as Mikel Echavarren reminds us, the Spanish coast is an enclave with many European retirees, 'and these destinations are not competitive in view of Spain's legal protection and infrastructure.' The CEO of Colliers therefore says that "we agree that second-house properties on the coast will be the first thing which will recover in the Spanish real estate market."