Spanish people continue to choose housing as their main investment because they believe it to be a solid asset with long-term profitability. Two weeks ago, we wrote an article in this blog about the reactivation of housing in Spain this summer. In that article, we showed the facts and figures of housing deals during this last month of June which were the best in eleven years. This has revealed that the Spanish investor continues to rely on housing in spite of the difficulties we have gone through on account of the COVID. It is just that investing in brick is still regarded as a safe haven in our country: it is calculated that a house represents between 80% and 98% of the wealth of Spanish families, and hence revealing their confidence in this asset. Spanish people consider that investing in housing is a safe bet and this is why most of them do not even think about placing the capital in any other kind of product. On the other hand, the decrease in interest rates has given impetus to making Spanish people opt for purchasing housing as they believe that the property will surely rise in value and be profitable in the medium and long term.

2021: UPWARD PRICES OF HOUSING

Housing prices in our country have slackened a lot since the time of the real estate boom. We can say that the price curve is ascending although it has nothing to do with 2008 when prices rocketed just before our real estate system collapsed. Analysts believe that this year 2021 will end with a slight rise in prices even though this rise will be more significant in coastal properties. According to experts, the progressive increase of vaccination will encourage foreign buyers and this will help to rebound prices in property located in holiday destinations. In spite of the fears that owners have of renting a house, the investment on housing for its subsequent renting, continues to be one of the most preferred options for Spanish people. After having gone through very difficult months, the housing sector has started to recover from the COVID-19. Therefore, renting property is a form of profitability which is very much taken into account by Spanish people. Even though the pandemic led to a nearly complete paralyzation of tourism in Spain, tourist flats still are important, and will continue to be so in the coming months as the facts and figures of the pandemic continue to improve.

AN EXODUS FROM LARGE CITIES?

At present, the question arises as to which will be the trend of the homebuyer as the pandemic graduallly disappears. Will the trend of looking for housing away from the large cities continue to be on the upswing? Will this new housing model which was set during the confinement continue to exist when larger and more spacious houses were sought far away from the city centre? Currently, it is not so obvious that this teleworking trend will remain as many companies have asked their employees to return to their offices. We will have to wait and see which trend will be followed when everything is restored to normal and also if the homebuyer continues to turn away from the large cities or instead looks for property there.

Picture 01: whatwolf

Picture 02: freepik