The best properties in Spain
The best properties in Spain
According to sources such as the newspaper El Pais, Idealista and many more, it is concluded that Covid-19 has accelerated the fall of property prices in Spain. The first months of the year a decrease of 5% was detected. According to the study carried out by Tecnocasas, it is concluded that house prices have fallen by 4.9% compared to the previous year. According to Idealista, the fall in second-hand housing prices could exceed 10% in Palma de Mallorca, Alicante, Barcelona, Valencia or the Canary Islands.
The APCE explains that the main impact will occur "in those areas with the highest unemployment rate and destruction of the business fabric, as is logical José Luis Álvarez Arce, Professor of Economics at the University of Navarra (UNAV), insists that “it is evident that the demand for housing is going to decrease hand in hand with the economic recession, higher unemployment and uncertainty about how the health and economic developments in the near future. Added to this is the lower demand that can be expected from non-residents given the less mobility that we are going to find in the coming months. This will especially affect homes in tourist areas ”.
It must be clear that the price adjustment is not going to be eternal, everything depends on the progress of the health crisis (the existence of outbreaks, the arrival of the vaccine that is available to each and everyone ...) and the state of the national economy.
It is expected that the situation in the real estate field will return to normal in the next 12-15 months, as long as there are no outbreaks and the situation does not force the application of the confinement rules again. However, according to Mikel Echavaren, the situation will not return to the same as before the state of alarm until 2022, although Colliers believe that the ‘full recovery’ of the market could take between four and five years to arrive.
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