Although we still have a long way to go before the pandemic is completely overcome, we can say that the real estate sector has started to recover from the COVID. When the unprecedented health crisis erupted, the Spanish real estate sector was practically brought to a standstill. However, little by little, it managed to reactivate and it improved its sales figures month to month. This does not mean that the situation is nowhere near to being overcome, but at least we can say that we can be optimistic, though with precaution, about the future. In this blog, we recently analyzed why young people find it difficult to emancipate since the eruption of the COVID-19. Before the COVID-19, young people already had difficulties in gaining access to housing, and on top of this the coronavirus has posed a new obstacle for them. In the second semester of 2020, the blackest period in the real estate sector since the irruption of the health crisis, investments were reduced more than 80%, creating very unfavourable forecasts. Luckily, the Spanish real estate system confirmed its strength and solidity by overcoming the crisis. Last week, we wrote about the positive facts and figures shown by the Instituto Nacional de Estadística regarding the purchase of housing this past month of March. Previously, in November and December 2020, property sales in Spain increased after having dropped during several months. If transactions continue to take place, it is estimated that by the end of this year we can achieve the number of January 2020, just before the health crisis completely paralyzed the sector.
VACCINATION: A KEY FACTOR
All experts agree on the fact that the final recovery will only be achieved when most of the population has been vaccinated. Even though property transactions continue to take place, housing investors are currently considering whether it is a good time to purchase as the health situation still creates uncertainty regarding price evolution. In this regard, experts are clear in stating that significant price adjustments should not be expected as they believe that price reductions have already taken place. In addition, they are optimistic about the future and they also believe that in 2022 the real estate market could match the figures of the beginning of 2020, just before the irruption of the pandemic. In this regard, the economy will be a key factor and if in the second half of 2021 an economic recovery occurs, as many analysts point out, then this will improve, even more, the data of the real estate sector. If we can equal the facts and figures of 2020 regarding housing sales, then we would find ourselves in an obvious scenario of recovery: this should be the objective.
FACILITATING ACCESS TO HOUSING
Property owners have the objective of facilitating access to housing. In order to achieve this, the collaboration among the private and the public spheres is fundamental, as property developers have been saying for a long time. Property owners would approve of boosting funding on the part of the executive as this would facilitate access to housing for the most vulnerable sector of the population, as for instance among others, young people. Property owners are convinced that this would put new energy into the market. Let us hope that these agreements are finally reached and thus the access to housing for the most vulnerable part of the population becomes a reality.