Foreigners, holiday apartments and second homes drive the housing market this summer

Foreigners, holiday apartments and second homes drive the housing market this summer

The lifting of restrictions and the advanced schedule of vaccination against coronavirus in Spain create encouraging prospects for the real estate market. This is what the evaluation company Instituto de Valoraciones believes.

In its latest study, the company summarizes trends that may set the pace of the sector in the coming months, and lists foreigners, tourist houses and second homes as the main drivers of the real estate market in the summer, with favorable financing conditions offered by banks to customers with a good credit profile.

In this regard, the appraisal company emphasizes that "a significant part of the revival of the real estate sector in Spain lies in the sphere of real estate activities of the Spaniards. There are many people and families who, given the restrictive measures in place over the past year, might be interested in buying a holiday house in the countryside or near the beach, partly due to the possible increase in savings or the need to have their own independent place to spend their holidays."

The Instituto de Valoraciones adds that this group "also includes those people who, although they do not want to travel to international destinations, will travel to Spain this summer, stimulating the rental market for vacation homes." In addition, the spread of remote work opens up new opportunities for second homes, which have evolved from a vacation destination to a property for long-term living.

The company considers foreign demand for real estate to be the catapult of the market in coastal areas and explains that "with the easing of restrictions and the resumption of international mobility, foreigners will return to Spain and invest in housing again. "In the first quarter of this year, foreign buyers accounted for 9.7% of transactions in Spain, which the Instituto de Valoraciones describes as "a sign that foreign investors are still interested in the Spanish real estate market." As an example, Swedish customers whose interest in buying luxury homes in Marbella has doubled this year.

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