While Spain’s property market continues to fluctuate and remain unpredictable, the latest data from Spanish property experts suggests that things are not too bad considering the fact that the world has been overtaken by the Cornonavirus pandemic.
Demand for property in the coastal regions of Mediterranean countries such as Spain, Portugal, and Italy remains attractive with statistics released for the the third quarter of 2020 suggesting that the good weather and the beach continue to attract international property buyers to purchase homes. Between the months of June and September 2020 there was notable demand from buyers in the US, UK and Germany.
Demand for property in Southern Europe remains strong because of the good weather, fine cuisine, and social benefits such as health and education.
The highest foreign demand for Spanish property in the coastal regions came from the United States. This beat the usual trend of buyers from Germany and the UK where, according to data released by the property portal, online searches for property in Spain remain high. German buyers still remain most active in the Canary Islands and Balearic Islands.
Househunters from the US also fueled demand for property in Portugal and Italy during the recent summer months.
Demand for Spanish property during September
It is no secret that the tourist season in Spain has been a washout this year. Covid-19 and the accompanying travel restrictions from many European countries have resulted in the destruction of one of Spain’s most important industries. Despite that, however, demand for Spanish property has remain resilient.
Data just released by INE, Spain’s Institute for National Statistics, shows that September property sales were only slightly down on the previous year. According to INE 37.839 properties were exchanged during September 2020, just 1.1% down on the same month in 2019, and an increase of almost 21% from August.
As for the provinces where most properties were sold in September, they were Madrid (5,498), Barcelona (3,395), Alicante (2,638), Málaga (2,346) and Valencia (2,053) while in-land provinces such as the provinces of Spain’s interior: Soria (61), Teruel (87), Palencia (101), Ávila (103) and Zamora (104) saw weaker demand.
Demand for luxury property in Spain remains stable
Despite a 12% drop in Spain’s GDP according to the IMF demand for luxury property in Spain remains stable.
Prices for Spanish property are expected to drop by 10% in most places and up to 30% in places where there is weaker demand but, despite the predictions, no notable change has been registered in the prices of luxury properties where sellers appear to be waiting until demand and house prices rise once again.