Property sales drop in Spain is a reality, now that the crisis progresses, according to the pisos.com
Property sales drop in Spain is here. The property website pisos.com forecasts that there will be a 50% decrease in the sale of properties to foreign buyers in the second half of this year. Nationwide, there were 50,522 foreign purchases between July and December 2019. This is predicted to come down to around 25,000.
In the second half of last year, four out of ten of all purchases were by non-resident foreigners, so “mobility difficulties between countries” are very important in determining how the foreign purchase market behaves.
The director of studies at pisos.com, Ferran Font, says that although the decrease is “drastic”, especially for a country such as Spain, which is attractive to foreign residents, this is happening in real estate markets everywhere. The nature of the product and its “high price” means that it is essential that purchase decisions are made “in situ”.
He adds that the “slow and unpredictable progress of the crisis, the lack of mobility and the fear of the virus” are the main causes of the drop in purchases by foreigners. The good news is, if it is a good news at all, is that this drop will not be spread equally. It will affect mostly following regions: Balearics, the Canaries, Andalusia, Murcia and Valencia. The website believes that, despite everything, the UK will continue to be the leading market, followed by France, China, Morocco, Germany, Italy and Belgium.