Spanish Property Market: Predictions for 2020
You cannot deny the fact that Spain is a safe choice when it comes to property investments. Plus the numbers have clearly backed that up during the past years.
That is why many foreigners decide to buy a property in the country; being in Madrid, Barcelona, Valencia, Marbella or in any of the other amazing Spanish cities.
But will the favourable conditions of the sector be the same during the next year? Will the trend we have been experiencing during 2018 and 2019 still hold?
If you are willing to purchase a house in the country, being as an investment or as your new residence, watch out. Because you really need to read this. Let's explore our predictions of the Spanish property market for 2020.
Spain will still be a great market for foreign investors: the market won't cease to grow
Since the huge impact of the 2008 crisis, the Spanish property market hasn't stopped growing. In overall terms, the sector is still experiencing a new revival after the one that preceded the crisis. And that is really important to note down, as the construction sector, along with tourism, are the main industries that hold the Spanish economy.
Plus,that revival can be especially perceived during the past 3 years. Will that trend still be true during 2020? Chances are that yes. Even though the sector may experience a slowdown, it won't be enough to turn it into a bad investment opportunity.
According to TINSA, real estate prices have increased by 3.8% during the first 10 months of 2019. Hence, even if we take into consideration the deceleration, the property market will still continue growing and offer really interesting opportunities for foreigner investors during the coming year.
Coastal areas as the key zones if you are planning to buy a residential home
If you are not considering an investment but just want to settle in the country and find the best possible house, coastal areas will be where you need to focus your attention on. They are the ideal alternative if you are planning to buy a first or second (holiday) home.
As we have said in the past, the cities (Valencia, Alicante, etc) are not only a good place to invest but also to life in. But you can still go down following the Mediterranean sea and find equally optimal cities; especially the ones in Costa Blanca. This last area is the preferred choice for many British, Scandinavians, Frenchs, Belgians, and Dutch citizens.
Forgetting about Barcelona and Madrid will be a good option if you don't want to make your pocket suffer. Nevertheless, if you still want to experience everything that such big cities have to offer, the surroundings and metropolitan areas of both capitals are also good residential options to bear in mind next year.
Spanish property market after Brexit
UK citizens (followed by German and French ones) are the largest group of buyers of properties in Spain. That is why Brexit can create many uncertainties on how it can impact the real estate market.
Nevertheless, there is no need to worry. It is almost clear that the small slowdown that property prices will experience during 2020 is not caused by Brexit but due to other factors. The process did not affect market prices during 2018-2019, so there's no reason to think otherwise in the future.
Even more, it could be that this Brexit uncertainty benefits the industry. Why? Because when things are not clear or there is a perceived risk, real estate seems to be the safest investment choice.
Nevertheless, many still fear the additional legal procedures any UK citizen must embark on if they finally leave the EU in order to buy a house in Spain. And many others who are in the middle of the process are also afraid of what will happen to their current transaction.
But that shouldn't be a problem. First of all, because all the rights that have been already granted won't be taken away.
And, additionally, as there will be a transitory period of 2 years in case the UK leaves the European Union, there will be enough time for the market to adjust. Therefore, taking those statements into account, the real estate market won't suffer from any possible side effects of Brexit.