COVID-19 and Its Effects on Spanish Property Market
11 April 2020 | by Aysun Tekçe

COVID-19 and Its Effects on Spanish Property Market

Buying Guide

The world is facing a more shocking crisis than ever before. The enemy that we encounter is quite insidious and it is quite dangerous if we look at the numbers. COVID-19 or the “coronavirus” as we know, which is defined as "pandemic", is affecting all countries and all areas of the economy as well as the real estate market.

Spain is one of the countries that experiencing the worst numbers and the real estate market is not immune to this pandemic. Everyone is wondering how this coronavirus will affect the Spanish real estate market.

It is commonly known that real estate is one of the less risky places to invest, in times of crisis. Property can always provide a return as being a tangible asset. Thus, this sector is an attractive and profitable investment tool and will continue to be so considering the losses in other financial instruments and decreases in interest rates.

Even though the short-term expectations show uncertainty and paralysation of property investments, we also expect a recovery in the medium term. There are good reasons to believe the market will recover quickly.

Let’s see what has happened in the Spanish property market after Coronavirus. By the declaration of the state of alarm and with travel bans, the market has slowed down as people need to visit the properties physically and make sure every detail by themselves. On the other hand, Spanish notaries have been advised to take care of only urgent cases and thus postpone title deed signatures, so it has also slowed down the transactions.

But after surviving the first shock of the crisis, people started to send inquiries. Because in this period, the pioneers of the sector both from buyers and sellers side started to see the opportunities. Real estate agents are keep working from home. It means buyers can easily contact them for their detailed questions. The professional ones, will listen to you, understand you and will find the best matching properties for your wishlist.

We believe that every crisis has an opportunity in it and these times could be better times to make preparations for the buying process and looking for new opportunities. The buyers are using their times at home to do research and make some contacts, to be ready once everything is normalized. Even some of them finalize the buying process with Remote Property Buying options when they find the right choice.

We have started to see some attractive campaigns on the market. Some of the construction companies are organizing a sales campaign by offers for covering the expenses of viewing travels to be done after the lockdown is over.  For some of the new developments, there is a chance of getting back the reservation fee if the buyer gives up after visiting the property personally after lockdown.

And, the most importantly Remote Property Buying programs attract a lot of attention. During this period, virtual viewing tours has become a key for buyers that have to follow the rule of #stayathome and without having to leave the comfort of their sofa. With Remote Property Buying the buyers can have virtual viewing tours via online communication channels like WhatsApp video call, FaceTime or Skype.

Spain is still the perfect place to live and will be looking forward to welcoming you again.

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