SUMMER IS PERFECT TIME TO BUY PROPERTY IN SPAIN
Does it make sense to buy property in Spain in the summer? Many analysts answer in the affirmative. New housing is now becoming a place of rest, work and vacation. This is the new reality that the COVID-19 pandemic has created. Buyers' demand is now focused on houses with a study, swimming pool, gardens, terraces and green spaces.
Many are looking for housing far from the city, where there is a piece of green space and a little more meters in case the isolation lasts for a long time, and remote work finally takes root in the labor market.
More and more interesting offers with reduced prices appear on the real estate market.
In June this year alone, a total of 46 transactions were carried out in the Spanish real estate sector, with a total value of 831.2 million euros. In the first half of 2021, March was the busiest month in the sector in terms of transactions number with 55 transactions, and in terms of amount, May was the most active, with 1,766 million in capital.
“The possibility of favorable conditions, the search for an alternative where to spend a vacation, the possibility to make profit make the summer an ideal period for buying a house in Spain,” real estate experts tell us.
REASONS TO BUY SPANISH PROPERTY IN SUMMER
Here are some reasons why you need to get serious about buying Spanish property in summer:
- Availability of free time. A vacation is the perfect time to relax and take stock of important decisions. How to relax and buy property in Spain? It is in the summer when there is more time for decision-making to explore Spanish property market and visit the properties that interest us the most. Realtors can also offer more personalized deals that best suit the needs of their buyers.
- Euribor interbank lending rate goes down. Analysts believe that the Euribor rate is likely to remain lowered for years to come, which means that if you need a mortgage to buy real estate, you can take advantage of the relatively low interest rates in the short to medium term.
- Take advantage of the moment. This is what Americans call those days or months when their presidential candidates count on public opinion in their favor. This word characterizes summer well. After several months, the real estate sector slowed down. Due to the health crisis, there are new opportunities to buy an apartment in Spain, as some sellers have decided to give up real estate in order to get more liquidity or to exchange property for certain assets. This practice will be beneficial for buyers as they will have more opportunities to benefit from buying property in Spain in summer.
- Good deal. The pandemic has turned the whole world upside down. However, COVID-19 has paved the way for telecommuting for hundreds of thousands of people in Spain who now want to live differently and in a different place. This is why country houses in Spain (a rural house a few kilometers from the city, a small island in the sea) can be an asset that will give you great returns when rented out for a short time. In Madrid, for example, house rental prices in La Sierra have skyrocketed in recent months and this demand does not seem to be going away.
- House is better than hotel. Another big innovation that the pandemic has brought is the feeling that it is much better to be in a private house than in a hotel surrounded by a potential virus. You can take vacations, work, and if you are in the same province, you can bypass the restrictions in a private house. This is a win-to-win situation that has only one caveat: can you afford it? Time has come for those lucky ones who can answer yes.
PROSPECTS FOR REAL ESTATE MARKET IN SPAIN
Spanish real estate market is attractive for many reasons: economic, socio-cultural, geographic.
Economic factors:
- Spain is ranked 13th in the world according to the International Monetary Fund and 23rd in the World Economic Forum's Global Competitiveness Index.
- Spain is an important international innovation center within the European Union.
- A dynamic Spanish society.
- Continuous growth of Spanish property market.
- Since 2013, real estate investment in Spain has increased by almost 50%.
- Since 2014, house prices have increased by 31%.
Geographic factors:
- Spain occupies a privileged geographical position with a developed transport infrastructure.
Sociocultural factors:
- Spain has a rich historical, cultural heritage and a unique world renowned gastronomy.
- Spain has the best Mediterranean climate in Europe.
PROPERTY PRICES IN SPAIN IN SUMMER
Let us consider the cost of real estate in Spain in summer.
Well, in June the price per square meter in Spain was 1.816 €.
Changes in property prices for June 2021 are presented in the table below.
| Location | Price for m² for June 2021 | Monthly dynamics | Quarterly dynamics | Annual dynamics | Historical maximum | Maximum dynamics |
|---|---|---|---|---|---|---|
| Spain | 1.816 €/м² | + 0,6 % | + 1,8 % | + 10,1 % | 2.053 €/ м² in June |
- 11,5 % |
| Andalusia | 1.716 €/ м² | + 1,7 % | + 3,3 % | + 9,2 % | 1.924 €/ м² in July |
- 10,8 % |
| Aragon | 1.324 €/ м² | 0,0 % | + 0,6 % | + 6,5 % | 1.924 €/ м² in November |
- 31,2 % |
| Asturias | 1.361 €/м² | + 0,9 % | + 0,1 % | + 3,7 % | 1.847 €/ м² июнь 2011 |
- 26,3 % |
| Balearic Islands | 3.169 €/ м² | + 0,9 % | + 1,8 % | + 2,7 % | 3.169 €/ м² in June 2021 |
0,0 % |
| Canary Islands | 1.891 €/ м² | + 0,6 % | + 1,0 % | +6,0 % | 1.937 €/ м² in May 2007 |
- 2,4 % |
| Cantabria | 1.454 €/ м² | + 0,3 % | + 0,2 % | + 2,5 % | 1.988 €/ м² in January |
- 26,8 % |
| Castile and Leon | 1.142 €/ м² | + 0,2 % | + 0,1 % | + 4,4 % | 1.468 €/ м² in June 2011 |
- 22,2 % |
| Castile-La Mancha | 875 €/ м² | + 1,0 % | + 1,6 % | + 8,0 % | 1.362 €/ м² in April 2008 |
- 35,7 % |
| Catalonia | 2.325 €/ м² | + 0,1 % | + 1,1 % | + 11,1 % | 2.573 €/ м² in June 2007 |
- 9,6 % |
| Ceuta | 1.959 €/ м² | - 1,5 % | - 11,7 % | - 8,5 % | 2.256 €/ м² in January 2021 |
- 13,2 % |
| Valencian Community | 1.478 €/ м² | + 1,7 % | + 3,8 % | +11,0 % | 1.839 €/ м² in January 2006 |
- 19,7 % |
| Basque Country | 2.668 €/ м² | - 0,1 % | - 0,2 % | + 2,8 % | 3.244 €/ м² in April 2011 |
- 17,8 % |
| Extremadura | 933 €/ м² | + 0,5 % | + 0,5 % | + 7,5 % | 1.203 €/ м² in April 2011 |
- 22,5 % |
| Galicia | 1.346 €/ м² | 0,0 % | - 0,6 % | + 3,5 % | 1.762 €/ м² in November 2011 |
- 23,6 % |
| La Rioja | 1.235 €/ м² | 0,0 % | + 1,5 % | + 8,2 % | 1.600 €/ м² in March 2011 |
- 22,8 % |
| Madrid Community | 2.945 €/ м² | + 0,6 % | + 1,76% | + 7,6% | 2.945 €/ м² in May 2021 |
0,0 % |
| Melilla | 1.814 €/ м² | - 0,1 % | + 0,1 % | + 3,9 % | 1.855 €/ м² in July 2012 |
- 2,2 % |
| Murcia | 1.056 €/ м² | + 0,2 % | + 0,6 % | + 5,1 % | 1.684 €/ м² in September 2006 |
- 37,3 % |
| Navarre | 1.462 €/ м² | - 0,6 % | + 1,6 % | + 11,6 % | 1.787 €/ м² in December 2007 |
- 18,2 % |
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