Real estate market has ridden out the pandemic well enough. The fall in prices was not as sharp as one might expect at first, and there are certain types of real estate, the prices of which did not fall, but increased.
“Luxury housing has suffered a less pronounced fall in prices than real estate in general,” says Emiliano Bermúdez, deputy general manager of the Don Piso real estate business. This year, the market expects prices to rise by about 3%, according to the expert.
Bermúdez explains that the current crisis is very different from the 2008 crisis, when the real estate market suffered from structural and systemic problems, while demand has now declined as a result of the emergence of COVID-19.
“The luxury market in Spain is expected to start growing this year,” he notes.
Bermúdez explains that luxury real estae is a very attractive asset for investors due to its high security. “It has become a safe property value due to its resilience to crises, because there are always rich people here,” the expert notes.
In addition to the classic destinations for foreigners to buy real estate, such as the islands or areas of the Mediterranean, Bermúdez warns of the good position in the global real estate market, which is occupied by Madrid and Barcelona.
Extensive cultural life of both cities, weather and the most attractive prices place them in the top ten cities in the world for a premier client,” he notes.
According to the expert, the opportunity to work remotely is closely related to the “growing demand” for first-class property among foreigners who see Spain as an attractive destination for their vacations, taking advantage of the flexibility of such work.
“This year we have added these visitors who come to work remotely to the usual profile of a foreign visitor,” the expert explains. Bermúdez notes that this new type of tourist is driving the sales and rental market even more, as they tend to spend more time in the country as they do not depend on a limited vacation period.
Unsurprisingly, the purchase of luxury property by foreigners recorded a historic percentage in 2021. While the influence of non-residents has slightly decreased in standard property, it has increased in real estate valued at more than half a million euros, amounting to 7% of the total, according to the Association of Registrars. “Taking into account the influence of the summer period, it is likely that this figure will increase even more,” says Bermudez.