Real Estate in Spain 2020: prices and prospects
General trends and prospects of the Spanish real estate market
According to experts, the prospects for Spanish real estate are a further rise in prices and steady demand. And these trends will cause the development of new phenomena, which are also worthy of the attention of everyone who is interested in the profitable purchase of real estate in Spain.
Lack of housing in popular locations
Due to the growing popularity of the country among tourists from all over the world, the demand for local real estate is so high that it exceeds supply many times. In some locations, new objects literally do not have time to build, and existing projects are bought literally at the drawing stage. This is typical for the Mediterranean coast and popular resorts.
The most acute problem of the lack of new buildings is felt on the Costa Brava. In Barcelona, the situation can be called critical. According to the official data of the Community of Appraisers of Spain, at the beginning of 2019, there were 300 finished and under construction new buildings in Barcelona. In 2016, there were 2,793 such objects in the city. This means that in two years in the capital of Catalonia, almost all new real estate was bought. This sought-after location is also characterized by the sale of apartments at the project stage. And all this is observed against the background of high prices - from € 300 thousand for an apartment in a multi-storey building under construction. Experts warn that in such a situation, it will probably be completely impossible to purchase a new building in Barcelona in the second half of 2019.
Experts believe that one of the main reasons for this situation is a new bill, according to which the developer is obliged to transfer up to 30% of the construction cost to the city treasury. These funds will be used to build social housing. Developers do not like these conditions too much, therefore they do not yet strive to start new projects in the city.
In other words, if you are looking to buy an apartment in Barcelona, you should definitely hurry up. There is a risk that the desired objects in this city may simply end.
Rent benefit
Along with prices and demand, the profitability of Spanish real estate is growing. Over the past year, this figure gained 7.4% per annum. In 2017, it was 7.1%. This suggests that it is profitable to rent property in Spain. An object worth € 100,000 will generate an annual income of € 7,400. But offices are even more attractive than housing. Their yield is 8.4% per annum. You can also rent garages, but this is not so profitable - only 5.1%.
