The pandemic caused a significant decline in almost all sectors of the economy, and real estate was no exception. In the key quarter of the pandemic, investment fell by 86%, and this figure has not yet recovered. Over time, each type of economic activity has improved to a greater or lesser extent, and now questions begin to revolve around the final recovery schedule, which will largely depend on the progress of vaccination. In the case of the real estate sector, the recovery is due to another key factor: the doubts of users, customers and investors, who have been wondering for several months whether prices will continue to fall or, on the contrary, now is the right time to buy. According to this information and experts, we can draw a conclusion that the adjustment has already occurred and that next year the market may return to a situation very similar to the one that was before the pandemic. David Vila, CEO of Renta Corporación, predicts that "from the second half of 2021, the economy will begin to recover strongly, and the real estate sector is likely to become a safe haven."
Figures that encourage recovery
There are several figures that show the gradual recovery of the real estate sector in Spain. First of all, this is the data on the transfer of property rights provided by the National Institute of Statistics. This analysis tells that with the pandemic, activity almost stopped until the middle of the year, but since June, the indicators have returned to a more stable situation in line with expectations.
However, everything is still ahead, as the January 2020 figures are close, but not yet achieved. If the dynamics remain positive, then 2021 will be equal to the statistics of the beginning of last year. As for the housing sector, the figures also set an optimistic tone, especially if we look at the annual changes in the sale and purchase of housing in Spain. According to data by EPData, transaction volume declined increasingly in the second quarter, but gradually improved. In the last two months of 2020, in fact, the annual indicator turned positive. The trend does not indicate the possibility of a further drop in prices, so the market is in a "bullish momentum". And users, customers, or investors who want to buy have little reason to believe that there will be a further drop in prices.