Updated: May 20
It is no secret that the coronavirus crisis has hit the economy hard. And the Spanish property market has also suffered a significant slowdown in the sale of homes and commercial properties.
However, Spain, and Valencia in particular, continues to be an ever-attractive market for investors and home owners alike. In the midst of the current crisis, the experts are clear: the real estate market will certainly recover in the medium term. While there is a general feeling of uncertainty, there is a clear hint of hope.
The good news for potential buyers is that some short-term price adjustments due to the reduction in demand are expected, before they recover in the medium to long-term. Until confidence in the future returns, the housing market demand will likely remain low, creating opportunities for investors who are willing to take advantage of the slump, which some say will begin to recover towards the end of 2020.
This is not a real estate crisis in itself and the sector was in a very good position, with healthy practices, so it is reasonable to expect a full recovery from the crisis. There is no denying that the retail or leisure industries will suffer, but real estate is a solid market. The demand that was there previously is expected to return when everything normalizes, and bring with it a bump in transactions. Another consideration is that the opening of international flights will generate a small tsunami of buyers eager to take advantage of the opportunities available.
When speaking to local real estate agents, we discovered that the volume of people pulling out of buying or selling residential properties has been remarkably low, especially in the medium to high price ranges. People are still looking to move ahead with their plans, although perhaps at a slower pace than previously due to the restrictions, but importantly, they do not appear to be overly concerned about the future of the property market in Valencia.
Looking forwards, it could be the case that people who were otherwise not looking to buy, could find themselves looking to move to more spacious properties having lived in the confines of their existing home all this time. With low interest rates and the expected reduction in prices, this could be a great opportunity for those who are in a position to afford it. Properties with outside space, such as gardens, terraces or patios may see an increase in demand as well as rural properties where it is often possible to have much more space for the same price as an urban apartment.