Is the Spanish property market improving? Yes.
Demand in the Spanish housing market will improve in 2021. S&P expects house prices in Spain to rise as early as 2021. An average of about 25% of household income has been save in the Euro zone. If the delayed demand for housing is caught up in 2021, more saving will be available to buy housing and house prices will rise as a result.
Is the Spanish Economy improving? Yes.
The Spanish government predicts a 7.2% rebound of GDP in 2021 following a a fall of 11.2% in 202 due to the pandemic global crisis, in line with the Bank of Spain projected growth of 5% in 2021 and 4% in 2022.
Are construction trends affecting the property market in Spain?
Price for new construction in those areas remain the same. The new-build houses that will be completed in 2021 have the most part been purchased already in 2020. In addition, Spanish construction companies are currently in a very healthy position and do not need to cut prices.
Why will the property market go up?
There has been a slight upward movement after 11 months. Catching up of demand for housing delayed in 2020. Extra financial resources. Very low financing costs. Much stronger foundations. Expected change of housing preference in 2021.
Should you invest in the Spanish housing market?
The Spanish property market will continue to be one of the most interesting assets for investors, in spite of the current pandemic crisis because of the housing price fall in the coming months and the accumulation of property stock in the market.
Central banks around the world will favour special financial conditions while inflation remains low, due to lack of consumer expenditure. Therefore, Euribor in the eurozone will stay at negative values around -0.55% in the foreseeable future.
