The changes caused by the pandemic are especially acute in the real estate market. While self-isolation and teleworking have highlighted the shortcomings of many houses and prompted their owners to look for others better suited to their new space and location needs, the virus that caused the deaths of older people in the early stages has also led to an increase in the supply of inherited property.
This is supported by a study by Fotocasa Research called Housing Inheritance During a Pandemic, which accounts for nearly 20% of total inherited property. Specifically, applicants for this type of property are reaching 17.8% this year, compared to 13.9% in 2019, an increase of more than four points during the health crisis.
And what purpose was chosen for the received property? Sale is the main purpose, since almost every fourth seller of real estate (namely 23% of the total) inherited it. Only 9.8% of all homeowners this year have chosen to rent this property.
Reluctance to rent property
Fotocasa document also notes that among the reasons for selling inherited housing rather than renting it out, new owners cite:
- the need to get rid of it for personal reasons (40%),
- unwillingness to rent out property. In particular, 28.3% fear problems with rent payment collection, and another 19.5% say they do not want tenants to spoil their property.
Recurrent income
However, heirs, who still decide to rent out property, do this mainly for economic reasons. Almost 70% say they are motivated by the fact that they have a permanent source of income, compared with 30% who say they do it because they prefer to keep the house occupied. The profitability of the lease and the fact that prices are falling, which means it is not worth selling, round out the main reasons for renting.
Mistrust of potential tenants, a large existing supply and high prices play against this.
As for the heirs who decided to sell the house, they note these to be the main difficulties:
- The work of real estate agencies (23.1%).
- A large number of offers that are already on the market (17.5%).
- Little time to show the house (15.6%).