spanskby

Questions and answers

This is how the property market in Spain is affected by Coronavirus.

The entire society is in a very special and challenging situation and of course the property market is also affected. We all need to be considerate and help manage the situation in the best way possible way. Below we outline how we adapt our way of working and we give our point of view of the situation and the possibilities of buying or selling a property in Spain right now.

2020-10-23

How has the Coronavirus affected the Spanish and Portuguese property markets so far?

The entire society has been considerably affected, especially in Spain, which is one of the most severely affected countries due to travel restrictions and quarantine. For the property market, this means, for example, that visits couldn´t be done as planned and that new developments were paused.

How do you adapt your business?

We have a close dialogue with our customers and taking into account their needs and considerations. We follow too the authorities' recommendations and take precautionary measures to reduce the risk of transmission. In practice, this means that we focus on digital meetings with our customers and prospects to inform and prepare as much as possible. Some parts of our work are difficult to implement, while other parts work well at distance. For example, we can guide you with digital 360 viewings where you can look around and get a good picture of the property.

How should you think if you have planned to buy a home in Spain or Portugal?

Do not give up your dream of a home in the sun! Right now, it may be difficult to complete certain parts of the property deal but take the opportunity to prepare as much as possible. Please contact our offices to inquire information you may need. We can also provide you with advice on what you can prepare right now.  Virtual Reality tours and high-quality photos will help you find the perfect home on our website. Contact your real estate agent to book a virtual visit.

How do you think the property markets in Spain and Portugal will be affected in the long-term?

It is very difficult to predict right now and of course it depends on how long and deep this crisis will continue. With a reduced demand and an increase in the property stock, it is likely that house prices are going to drop significantly in the future, which of course could mean opportunities for strong buyers. Probably, we will also see that new developments are paused and declined in the future. When the worst crisis has passed, we expect to see a recovery. If prices drop and new developments decline, demand and recovery can come relatively quickly.

If a deal has already started, can it be completed?

Yes, if you are all set or have established a power of attorney, the deal can be completed, although there may be some practical limitations. For example, some notary offices are closed, while others remain open. Therefore, expect administration to be slower than usual.

Can you drop out the deal?

If you have signed a contract, you must respect it. This principle is called Pacta Sunt Servanda, which is Latin for "agreements must be kept", and fundamental in civil and international law. Many buyers or sellers ask if "Force Majeure" can be a valid reason to breech a contract. It must be assessed on a case-by-case basis, but in most cases, it would lead to postponing the contract obligations until the cause of force majeure ceases. In most cases, this means that the Corona situation can create delays in the deal, nothing more.

If I have already bought a home, what consequences can the Corona situation have?

If you have purchased off-plan, expect a later delivery date. Developers are likely to take precautionary measures, for example due to problems with subcontractors, which affect the delivery date. Please contact your agent for more information about your project. If you bought a resale property, then the written agreement is valid.

Contact us for more information .

Contact us

Do you have questions about buying or selling your property or maybe about us?

Please enter your contact details and we will contact you shortly.