Housing market per­for­mace du­ring Covid-19 crisis

The Price Of Housing In Spain Could Fall By 5% In 2021

Housing in Spain.
Housing in Spain.

Continuing the ne­ga­tive trend al­ready ob­served in 2020, when this type of asset de­pre­ciated by 3.7%, hou­sing prices could fall 5% in 2021, ac­cor­ding to a survey of sector ex­perts or­ga­nized by the news­paper Expansion.

On the other hand, a certain recovery in the volume of sales and purchases is expected this year, with up to 480,000 transactions compared to 450,000 last year; in 2019, almost 570,000 property sales and purchases were recorded. Despite an expected economic upturn, the acceleration in price falls in 2021 is attributed, amongst other factors, to the existing gap between the actual performance of the market and records of transactions.

Accordng to Anlaysts atr Intermoney, housing prices are inevitably going to suffer the onslaught of the pandemic. However, a relaxation in prices and rent increases due to economic cooling was already evident before that.

“And there are additional factors which will contribute to the decline in prices, such as the collapse of tourist rents in the big cities. This would force many owners to put their apartments up for sale. Finally, new government regulations do not help to make the sector more attractive either.That said, it is not all bad news. This is because the large amount of household savings could be transferred, at least in part, to real estate investment sooner or later.”

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