During the difficult economic situation in the world caused by the notorious COVID-19, number of people, both sellers and buyers, are wondering what to do with the planned purchase/sale of real estate in Spain? To wait, to try to “grab” real estate at lower than the market price, or vice versa - so many men, so many minds.
Just to name a few, we recently heard the following opinions:
“A part of the demand will be affected by the impact on employment (ERTE, job loss ...)", as warned by Raymond Torres, director of the situation of Funcas.
“This situation will only last till the end of the year and this is the right time for buyers as they are the ones who are setting the price right now.” - Gonzalo Bernardos, economist and professor at the University of Barcelona. He even advises "haggling the price of a new home to the developer or getting a free garage or storage room".
"I think it is better to wait for the adjustment to be defined to make decisions, although the fall in prices may be a good opportunity for all those who have plenty of liquidity and are looking to buy a house", says Carlos Ruiz, director of studies at the IEE.
As for us, we do not believe that the current COVID-19 crisis, for all its magnitude, turned out to be quite fleeting (many countries plan to quit quarantine in May) will have any significant effect on the price of real estate - it is a protected asset, the price of which is determined not only by momentary speculation of investors, and unless it is already overpriced significantly, there are no reasons to expect its price’ fall or increase.
We do not recommend putting plans on hold: if there is a need and intention to sell - sell, decided to buy - buy.
At that, in order not to make a serious mistake when investing in real estate, it is better not to panic and make sudden movements.
To conclude with, we agree completely with Mikel Echavarren, CEO of Colliers Spain, that “the most sensible recommendation in the current situation is to keep cool head.”
THANK YOU FOR YOUR INTEREST
We will respond to your letter in the near future.