2020 has been an unpredictable year, and the housing market has of course been affected – by local lockdowns hindering house showings, closed borders and economic uncertainty. As we progress towards 2021, some markets are seeing a positive boost: for example, in parts of Spain, developers are noticing a sustained demand for new homes, most likely driven by the shifting priorities of remote working and the need for private outdoor space.
Below, we have put together an update on the Spanish property market, including the latest on house prices and demand for new build property, as well as our predictions for the future.
Property prices – what can we expect?
Early in April, most Spanish analysts anticipated a drop in property prices of between 10-15% in 2020, but this hasn’t been the case everywhere. In fact, the market in Catalonia and Andalusia remains stable.
Both Catalonia and Andalusia are regions of interest to GRE Assets, with the former home to our existing residential projects in Spain and the latter identified as an attractive investment location in a recent blog post. A stable market, along with sustained demand and low interest rates is promising, but it is important to recognise that due to the current economic situation affecting job security, buyers are more cautious. That said, we believe that news of a vaccine will increase confidence in the market moving into 2021.
New build residential property in high demand
The current Spanish property market varies greatly from region to region, as different areas are affected by changes in tourism and demand. GRE Assets has seen interest in its residential projects in Barcelona internationally, including from North and South America, as well as locally. The launch of the first phase apartments at Brises Diagonal Mar in September has also received great feedback from prospective buyers.
Preparing for the future
While 2020 has taught us that predicting the future can be challenging, as the market moves into 2021, we believe there will be opportunities especially for the buyers and investors with confidence. Furthermore, the news of a vaccine is extremely optimistic is growing buyer confidence. We also believe Barcelona will remain popular among young professionals and Málaga’s affordability and inward investment makes it a good area to invest in.