Sunshine And Dark Clouds On The Beach

2021-02-13   |   by CusiGO

One of the disastrous unknowns of 2020 is how the epidemic affects foreigners buying homes in Spain, especially in the sunshine and beach areas. Registered business schools have made this public. Foreigners bought 46300 homes in Spain in 2020, down 26.5% from when 63000 transactions were closed in 2019. This figure is also far from the sale of 65400 homes in 2018. “This is the worst number in the last decade,” commented Jose Miguel Tabarez, vice president of the registered college. Nevertheless, the market fell less than expected. Luis corral, chief executive of the real estate advisory forum, said the purchases took place mainly in the months before the pandemic and “in the summer, when they rebounded sharply.”.

In 2020, the proportion of foreigners purchasing housing will be 11.32%, compared with 12.45% in 2019, a decrease of 9%. In the past eight years, excluding 2020, it has accounted for 12% to 14% of total demand, according to registered colleges. His vice president explained that foreigners have not lost more market share because it is a structural demand. “The data prove that, because in an unprecedented situation, liquidity is strictly limited and there is no sudden decline,” Tabarez said.

By nationality, the British (buying 6043 homes, down 2715 from 2019) continued to lead, followed by the French (3777 homes, down 1153) and the Germans (3589 homes, down 885). Since the brexit vote in 2016, the downward trend of UK buyers has been exacerbated by the pandemic and the UK’s eventual exit from the EU since February 2020. “By 2015, Britons will be buying more than 20% of all foreigners’ sales. Then it began to decline, with the market share stabilizing at 15% in 2017 and 2018 and further declining to 13.05% in 2019 and 2020, “tabares said.

Restrictions on international liquidity by major buyers such as the UK, France and Germany have peaked. In addition, the impact of the global economy has panicked many potential buyers. The coastal areas of Spain traditionally sell the most houses to foreigners and are the areas of most concern. Balearic Islands (top with 29.64% of foreigners), Valencia Community (23.34%), Canary Islands (22.80%) and Murcia (18.48%).

According to Natalia Bueno, President of the association of real estate agents in the Balearic Islands, the number of homes sold to foreigners in the Balearic Islands will fall by about 18% by 2020. He gave a warning to luxury homes: “their markets have only recently stopped because of travel restrictions, but once they flow freely, they will return to normal.” Although covid is not the only culprit. “Many buyers of second homes try to make a profit by investing in holiday rentals, which is not facilitated by restrictions on obtaining holiday permits and Spain’s high tax on foreign rental investments, Besides, the British don’t have community status yet, “he said.

Bueno pointed out that brexit has led to the sale of properties by the British residential community in menocca, “although it is difficult to sell them at a high price in the short term.”. “Many middle-class foreigners working in the Balearic Islands have returned to their countries of origin because they are getting more social benefits there,” he said According to API of Balearic Islands, the price has dropped slightly at present, so “many buyers hope to have more opportunities for decline”.

In Alicante Province, where there are 125 ethnic groups, marif é Esteso Rubio, President of the Alicante Association of Realtors, said: “because of the epidemic, the proportion of houses sold is high, but it’s not entirely because they continue to buy people who already live here, or through power.”. Even so, he admits, “there are still people waiting for the situation to improve to buy.”

And the price is reasonable. Nathalie Rosenberg, Rosenberg’s real estate manager, said that in Benidorm, foreigners usually buy houses at an average cost of 180000 to 200000 euros, many of which are used as investment in holiday rentals, with prices falling by 25% to 30%. At the agency, “sales have fallen 88% since the flu outbreak, especially in posiant beach and Cape luix.” Benidorm’s case can be summed up in one sentence: “in a good quarter, you can shut down 20 foreign companies. “Currently, there are only domestic sales and two to four deals per quarter,” Rosenberg commented.

The Canary Islands have never experienced a similar situation. “Sales are down more than 50%,” estimates Antonio Blanco Schindler, director of Bellevue Canarias, a real estate brokerage that manages properties in Las Palmas de Gran Canaria and on the island’s southern coast. “In a good quarter, usually in winter, there are five to 10 properties for sale. I’ve lived on the island twice this winter. ” Brokers explain that many clients have given up buying even if their house suits them. “Last December, when a German couple saw a surge in cases in Tenerife and Germany, they dropped out,” Blanco said Others are planning to visit in June, which is unusual. “It’s strange to do it so early,” white admitted. From St. Augustine to Mogan beach, prices have fallen by 10% to 15% on almost the entire south coast, with the most popular apartments costing 200000 euros.

What will happen in 2021? Coronavirus makes the second coastal housing market in trouble. However, “when the outlook for 2021 is clear, the market will experience a major rebound. When the epidemic is over, the number of foreigners buying second homes will increase, and the British will play a special role. There’s liquidity and supply in the market, “says Louis corral. In contrast, the situation in Tabarez will be quite similar to that in 2020.