And here comes the million-dollar question! There is a Spanish word I love, which is “Vaticinar”. It can be translated as “to foretell”, or also as “to prophesy”, which gives a good idea of the level of uncertainty we are facing here.
Will property prices go down? Well, many factors have an impact on housing prices:
- Supply and demand
- Interest rates
- The Economy
As the International Monetary Fund predicts that the Spanish GDP will contract by 8 percent during 2020, and that unemployment will soar above 20 percent, we can consider that the “Great Lockdown” crisis had a negative impact on Spanish housing prices.
Are Spanish property prices doomed to go down? Well, did you know that between 2008 and 2015, Spanish real estate prices decreased by 40%? Therefore, the previous crisis is going to be protective of real estate prices this time, to some extent.
Indeed, the good news is that there was no housing bubble in Spain before COVID-19 came, as we mentioned before. So, even if the Great Lockdown surely impacted the Spanish real estate market, it should not impact property prices as much as it will in other markets such as Australia or the United States, where analysts are predicting massive price drops.
Therefore, if you wish to follow closely the evolution in property prices, contact our Property Advisors, who are following forecasts and predictions in their area very closely. Indeed, it is very clear that not all cities, not all areas, not all sectors will be affected in the same way.
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