The real estate market in #Spain during 2020 has resisted the push of the pandemic with decreasing price changes between 2 and 6 percent of the price of housing in large cities, the coast and second homes.
#Although the real estate sector has not been saved from the impact of the pandemic, but has recovered faster than other sectors with minimal impacts on housing prices in large cities, the coast and second homes.
The coronavirus has minimally affected the real estate sector, but the future of the sector is uncertain
The real estate sector is experiencing difficult moments like the rest of the sectors and the demand for housing has restarted with great power, since some of the families have seen that their households did not adapt to the needs they had in moments of confinement and, therefore, they have gone out to look for new homes.
#Forecasts for next year will depend, like all sectors of the evolution of the pandemic and the economic effects affecting the financial sector, on the one hand, to grant the mortgage loans and, on the other hand, the savings and the income that the families count.
Therefore, the real estate sector is also living a moment of uncertainty both in market demand and in property prices, and it is not known for sure what will happen.
The effects of the different waves of the pandemic in the real estate sector
The consequences of the second wave and the successive waves, until the effects of vaccines among the population, it can affect the market, but in recent months there has been a reactivation during the summer period, after the first peak of the first wave.
#But clearly, the second wave of the pandemic is once again cooling the market and, therefore, is cooling rapid recovery that was happening, so we will have to see how far the setback goes and the effects for 2021.
#Based on this scenario, that vaccines are effective during 2021, the effects on the market and prices are not significant, but clearly there will be a new readjustment after the one produced by the previous crises in #Spain.
The effects of the pandemic are not expected to be the same as the effects of the 2008 financial crisis, since the financial crisis had more housing stock built and now there are less than half.
#Adjustment in real estate prices
#It is expected that there will be a reduction in prices, but it will not be more pronounced during 2021, since there is no excessive supply or built promotions that cannot be bought as happened in previous crises.
The market most affected by the price readjustment would be second-hand residences and second homes, since the purchase of the first home is a basic necessity for families.
The reduction in the price of second-hand housing between 2020 and 2021 is expected to be 8 percent, although the economic situation of the families that want to be owners will depend.
#With the start of vaccines it is expected that the rulers remove mobility restrictions #For the following months it will not immediately affect the price of housing, and we will have to wait until the end of 2022 and the beginning of 2023 there will be significant recovery effects in the sector.
The effects of the pandemic also affect housing rents
#Currently, with the restrictions on mobility and the fall in tourists, the effects have come to affect the price of both stationary and non-stationary rental housing.
The lack of demand #It will cause an excess supply and this will affect the price of rents, which will surely affect them downward in 2021 in those contracts that are going to be renewed.
#On the other hand, rent adjustments #Due to the increase in supply, they have resulted in a readjustment in prices, although not in an equal way in all areas of #Spain.
The price regulation of rent is to increase the supply of rental housing so that prices decrease. #You can think about creating a public property park and incentivizing the owners with tax deductions and security before defaults or damage to the property.
#In The #Salmon #Blog | #Regular rent is not that effective. #What do they tell #Sweden!
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