Spanish real estate grappling with Coronavirus
In recent days, unfortunately, more and more states are experiencing serious difficulties in facing the Coronavirus danger. The real estate market is not exempt from these problems. And to give an overall picture of the European situation, today we decided to analyze the Spanish situation which, seems to be really critical for real estate.
According to an article in the New York Times, Coronavirus has moved its epicenter to Spain over the past weekend. A very serious situation therefore, the Spanish one, which confirms 10,000 positive cases. This led to a collapse of real estate interest in Spain which, until a few weeks ago, had achieved really positive results.
In fact, with the beginning of 2020, Spain had become one of the most important tourist destinations to invest in. The cost of living adapted to the needs of each social typology, the open and welcoming culture have always been the spearheads that have attracted a multitude of potential buyers. Well, the onset of the shock paralyzed the Spanish real estate, especially in the residential sector.
But this shock must not be analyzed only from a negative point of view. The contingent situation, in fact, must be extended in the medium and long term. Surely, the criticality will undergo a real turn when the property prices are lowered, representing a very valid opportunity for the interested parties.
As for the second-home market dedicated to leases, it seems to have some more deficits. First of all, it is a contract type that is by now not very popular. In fact, only a small group, usually represented by the younger ones, choose to sign a lease for obvious reasons. On top of the motivations, of course, is the study. But in such a critical period in which all secondary activities, including universities, remain closed, how can a rental contract continue or worse?
In short, the situation in Spain has literally reversed compared to a month ago. And what is most frightening is the absence of well-defined time prospects. Meanwhile, the Spanish government has obviously decided to adopt measures already embraced in other countries, precisely to avoid the situation of extreme collapse of health services.
What is most emblematic is the correspondence between a real desert in the streets of Spanish cities, similar to that found in real estate.
A sort of pause, which is hoped to last as little as possible. Especially for sellers.
While not knowing for sure what the implications of this phenomenon that is bringing the entire globe to its knees will be, we will still be updated on the latest news from the real estate world, to be able to give you a complete picture of the situation and the right advice to follow!
According to an article in the New York Times, Coronavirus has moved its epicenter to Spain over the past weekend. A very serious situation therefore, the Spanish one, which confirms 10,000 positive cases. This led to a collapse of real estate interest in Spain which, until a few weeks ago, had achieved really positive results.
In fact, with the beginning of 2020, Spain had become one of the most important tourist destinations to invest in. The cost of living adapted to the needs of each social typology, the open and welcoming culture have always been the spearheads that have attracted a multitude of potential buyers. Well, the onset of the shock paralyzed the Spanish real estate, especially in the residential sector.
But this shock must not be analyzed only from a negative point of view. The contingent situation, in fact, must be extended in the medium and long term. Surely, the criticality will undergo a real turn when the property prices are lowered, representing a very valid opportunity for the interested parties.
As for the second-home market dedicated to leases, it seems to have some more deficits. First of all, it is a contract type that is by now not very popular. In fact, only a small group, usually represented by the younger ones, choose to sign a lease for obvious reasons. On top of the motivations, of course, is the study. But in such a critical period in which all secondary activities, including universities, remain closed, how can a rental contract continue or worse?
In short, the situation in Spain has literally reversed compared to a month ago. And what is most frightening is the absence of well-defined time prospects. Meanwhile, the Spanish government has obviously decided to adopt measures already embraced in other countries, precisely to avoid the situation of extreme collapse of health services.
What is most emblematic is the correspondence between a real desert in the streets of Spanish cities, similar to that found in real estate.
A sort of pause, which is hoped to last as little as possible. Especially for sellers.
While not knowing for sure what the implications of this phenomenon that is bringing the entire globe to its knees will be, we will still be updated on the latest news from the real estate world, to be able to give you a complete picture of the situation and the right advice to follow!
