The beginning of 2021 was tough due to the decrease in foreign investment in Spain; that the vaccination campaign promoted the general economic recovery and, above all, the real estate sector.
The vice president of Alfa Inmobiliaria, Jesús Duque, explains that the provinces with the best recovery forecast are Madrid, Valencia and Malaga; although other areas such as the Balearic Islands and Barcelona are cities that are receiving foreign demand.
According to the real estate expert, “both international managers and Latin American, Russian, Chinese or Central European buyers find it attractive to set up residence in our country.” This is not new, since before the pandemic, these citizens were also interested in our country, but now they are also driven by the advantages of teleworking.
This recovery in the real estate market has led to an increase in property prices in these areas, although this is not a problem for foreign investment. In fact, Duque explains that these buyers are willing to buy the properties of their choice without worrying about excess price.
Luis Corral, CEO of Foro Consultores Inmobiliarios, confirms what Duque said. “During the summer there was already a greater interest on the part of foreigners both in coastal areas and in big cities or in urban areas of coastal cities.” Among the main reasons for this, according to Corral, is “teleworking and the need for more open spaces.”
We can also see this trend among national investors, who are looking for a home that “is not only on vacation, but also to spend long periods of time or even telecommute.”
British retirees and Brexit
A different and special case is that of British investors; since two important factors influence, covid, which has affected them the same as other foreign citizens, and Brexit.
According to Luis Corral, the consequences of Brexit had already begun to be noticed. British citizens and, especially retirees, were the nationality that had the greatest contributions to real estate investment in our country. Now, instead, many of them are selling their properties in Spain.
According to the College of Registrars, the British continued to lead the investment ranking in the second quarter of 2021, although they had a significant drop, accounting for 9.5% of total purchases. Because, as of August 20th, they were able to travel.
From these data, we can deduce another important question if we look at the history. In 2010, investment from the British reached 35% of home purchases in our country, while now it is 9.5%.
British investment was concentrated in the sale of homes in areas such as the Costa del Sol, the Costa Blanca and the Canary Islands; while now, other nationalities are looking to invest in other areas as well.
What can happen in the short term?
Luis Corral optimistically affirms that since the beginning of 2021 “a moderate recovery is already observed”, so it will surely continue in this line in the coming months. In addition, he believes that “interest in the purchase or rental of a second residence” has begun to increase, both from foreigners and nationals.
In the case of international demand, in addition, “they see second homes beyond spending a vacation in them.” So they will look for homes that allow them to work many kilometers away, also having good services and communications”.
Luis Corral affirms that “there is liquidity in the market” and this shows us good prospects for the real estate sector.
