Spain´s property market bounces back for a strong finish to 2020

MANY WORDS COULD BE used to characterise 2020 but none of them are suitable for publication in this forum. The year broke records in the worst and most unimaginable ways, with a global pandemic that touched the lives of millions and reached every corner of the world.

The Coronavirus catastrophe has lead to substantial unexpected political and economic fallout with implications for almost every segment of the global economy. So how has the Spanish property market fared this year, and how has the pandemic affected property prices on the Costa Blanca?

We first wrote about the early effects of the CoVID-19 pandemic on the local real estate market in May of this year. At that time we predicted that the future of the Spanish housing market would not be shaped by Governments, banks, or institutions; but rather, it would be the future buyers that would influence property prices and shape demand for residential housing in the peninsula.

In particular, we noted that the lessons learned from living through a pandemic would change what kind of properties buyers would look for, or more accurately, buyers experiences would transform the importance of their preferences.

Homebuyers scramble for homes with more space

In today´s upside-down world, the efficiency of space is off-trend and the luxury of space is in vogue. Today´s homebuyers want big, bright and airtight in response to coronavirus. They want private gardens, sunny balconies, and bedrooms that can serve as at-home workspaces or makeshift classrooms.

And soaring demand for new build homes with more multi-purpose spaces, better air quality and higher security, is outpacing demand for traditional apartments which often suffer from a lack of useable outdoor space and compromised accessibility.

Requests to visit detached homes rose 86% in Madrid and 46% in Barcelona from April to September, according to property portal Fotocasa. Skyrocketing domestic demand has driven sales of larger properties to record-high levels across the country.

While the sale of apartments fell 0.1% in September and 13.9% in October according to the latest available government data, the sale of single-family homes is far above last year´s average, rising 25.9% and 13.2% respectively.

The coronavirus exodus toward coast and country

But prospective buyers aren´t solely focused on this aspect of their future purchases, and the choice of location, as always, has also experienced a major paradigm shift.

Faced with travel restrictions and area confinements across the country, domestic homebuyers are looking further afield away from urban centres. Spanish newspaper, El Pais, labelled the shift toward coastal and country locations "The coronavirus Exodus" just last week, reporting that Spanish residents were increasingly looking to acquire permanent homes outside of the cities.

Data released by Spain´s National Statistics Institute (INE) reveals a remarkable recovery and total property sales in September 2020 were only 1.1% lower than for same month in 2019, with sales in the Alicante Province (2,638) placed third behind Madrid (5,498) and Barcelona (3,395), outstripping total sales in Málaga (2,346) and Valencia (2,053).

Stable Spanish house prices on the Costa Blanca

Forecasts made at the beginning of the pandemic predicted a sharp drop in prices as a result of the economic crisis, but for the time being at least, the latest data does not reflect this impact.

Nationwide, Spanish property prices rose again in the third quarter of 2020, albeit by a marginal 1.1% quarter-on-quarter. Instead, prices are maintaining a tendency of slight deceleration, sustained in part by the price of new housing and an increase in demand for more expensive properties.

And according to figures from Spain´s College of Property Registrars, the Costa Blanca remained the most popular region on the Spanish mainland with international buyers, with 24.1% of all foreign sales taking place in our locale during the third quarter of this year.

The Costa Blanca remains exceptionally affordable, and there are still bargains to be found that boast the essential combination of space and security that modern overseas property buyers are looking for.

Just take a look at this sunny, south-facing townhouse in Los Balcones, on the outskirts of Torrevieja. The property offers 3 spacious bedrooms, 2 bathrooms, and plenty of outside space including a balcony terrace, low maintenance patio garden and a private solarium with charming views.

The home offers a low-density location within easy reach of essential local amenities, the neighbouring city of Torrevieja, and just 5-minutes by car from some of the finest beaches on the Orihuela Costa. On the market right now for just €99,950. Check out the floorplans and more photos of the property.

Our team understands international property buyers and the evolving landscape of the Spanish property market. Get in touch with us today and let Inmo Investments help you sell your Costa Blanca property. Call +34 966 919 917, WhatsApp +34 667 319 713, email info@inmoinvestments.com, or find us on every social media platform that matters.