Housing investment is now picking up again. The real estate market has recovered and offers interesting alternatives. "Spain is in fashion. It has been an early leader in real estate tourism," says Ángeles Serna, TM Real Estate Group’s President. She also notes the growing interest in buying a second home.
Information provided by the National Statistics Institute shows that the sector is doing well. Real estate sales grow and regain levels previously seen in early 2008.
The coronavirus pandemic has changed life priorities. Many foreigners who wanted to buy a vacation home now consider staying in the Costa del Sol, one of the most popular destinations for foreign investors.
According to data from the Ministry of Transport, Mobility and Urban Agenda, non-resident foreigners bought 43,827 homes and residents purchased 59,168 homes in Spain in 2021. So, the total is 102,995 housing units. Thus, resident tourism overcame the pace that was lost due to the pandemic and returned to growth.
Speaking at the SIMA (Madrid International Real Estate Show), Ángeles Serna stressed that the requirements of foreign buyers have changed. Their "non-negotiable" requirement is broadband in the house to be able to work remotely. Other criteria are proximity to the beach and spacious terraces.
She adds that slightly bigger houses with an office or an area for remote work are in demand. Natural light and design are appreciated. When making a decision, foreigners take into account access to an international airport at reasonable proximity, cultural offerings, leisure, restaurants, health care, and sports infrastructure.
José María Esteban,Ores & Bryan's Director of Real Estate Development, also emphasizes that COVID-19 means a change in perspective, and "it is likely that people will sell their houses to move to another place and change their residency." He notes that Spain has a real opportunity to become the "Florida of Europe" and reminds that "68% of buyers purchase property to stay" in this American region.
In the same forum, Javier Roman, Director of Real Estate at Diglo, real property administrator of Banco Santander, points out that national clients have saved during the pandemic. And now, they want to find a place to escape the hustle and bustle of the city. An average purchase budget is around 100,000 euros, which is three times less than the budgets of foreign investors.
Roman explains that these are young people who are looking for a second home on the coast, and they need 80% of funding to buy an apartment. Given the shortage of new buildings, they offer the possibility of reforms "according to your liking", and the possibility of virtual furnishing in different styles to see what it might look like. He defines this as some sort of "turnkey-like" service.