The housing market is heating up
Undoubtedly 2020 has most definitely been one of the most hard-hitting years in the past decade. With so much happening around the world, having plenty of affected markets you must be wondering how the current situation is impacting real estate trends. The real estate sector in Spain, has recently been operating with normality after the COVID-19 pandemic, it is gradually reactivating and recovering at operations level whilst the Spanish economy picks up.
A change in the demand…
With regards to the property market there have been noticeable consequences that have been detected in this time frame. There has been a major increase in client interest in properties that offer outdoor living spaces such as terraces, gardens with swimming pools, being able to enjoy outdoor freedom without leaving the house. Not only this, but having big enough windows and daylight has also played a huge part on having to work from home and spend a great deal of time inside. Therefore, buyers are most definitely in the market for single-family homes in individual plots as well as properties that have communal areas for recreational use. Even those who already have apartments and penthouses are on the search for villas.
Specifically, in La Costa del Sol there is an increase in the demand of high purchasing power clients, both international and national. The result of the lockdowns has meant re-thinking lifestyle goals and created urgency to change and buy a second residence. At the same time other potential buyers who have been thinking about purchasing a property here, will now have the motivation and urge to move forward with their plans. This demand will be most evident in some of the best residential areas and for luxury properties. So the next question is how will the housing market make it through the current economic climate? Here we will talk about the real estate trends for 2020…
THE REAL ESTATE SECTOR IN SPAIN, IS GRADUALLY REACTIVATING AND RECOVERING AT OPERATIONS LEVEL.
The prices are still rising..
To begin with, in April 2020 house prices raised less than 1% in comparison to the previous year. This trend is most likely due to the pandemic creating uncertainty and instability. However, as the world began to deal with this pandemic and come up with creative ways to move forward, the house prices shifted to a 3% growth rate which is almost the same as before the pandemic came about. This could therefore mean that house prices could sustain some momentum and even slightly rise in the following months.
What these low prices means to the buyer
With interest rates staying low it means that buyers will be more tempted to buy your home sooner rather than later. Regardless of one’s financial capacity, everyone is always on the look out to save whatever they can and buy smart. However, if interest rates start to rise during the year, it is important to be prepared to have your house on the market for a bit longer. Higher interest rates added to the commitment of a mortgage will always make buyers take longer to decide.At 3SA we are committed to offering you the best service on guiding you on how much to sell your house for and roughly how long you will have to wait for the best offer.
“…on Costa del Sol there is an increase in the demand of high purchasing power clients, both international and national. The result of the lockdowns has meant re-thinking lifestyle goals”
Now is the perfect time for the buyer…
The demand for villas, especially the exclusive ones is responsible for an important part of the increase. It is a great time and opportunity to consider relocating after such a challenging pandemic, where one thinks about how quickly life can change. At 3SA we have a large selection of fabulous and fine villas to offer you for settling into your new life. However, regardless of whether you are buying or selling, you can take advantage of the current trends by partnering with us to help you meet your end goal.