When an economic crisis hits a country, it is often much easy to pick out the damages it leaves behind than otherwise. The fact that the positive aspects are difficult to outline doesn’t roll out the fact that they exist. Looking from a “positive eye” we would realise that every crisis has at least an inlet of positive impact; the novel coronavirus crisis in Spain is not left out. 

In this article, we shall examine the positive impacts that the COVID-19 outbreak will render on the housing market in Spain. 

Although sales operations have been deadened and specialists believe that the housing market will not resume normal pursuit at least til the end of 2020, the sector remains positive and is convinced that the health crisis will bring some amazing possibilities. 

A recent study by Comprarcasa, a chain of a hundred and fifty real estate companies in Spain and Portugal- 20years of activities with at least 120000 transactions, compiles the “good” that could be here to stay in the real estate market post-COVID-19.

 Amid these is the burst toward the market of technological gadgets, the empowerment of the customer, flat interest rates among others; some of these are better explained below. 

 Flat Rates and Client’s empowerment

The system acknowledges that they will be a discount on the prices of houses. This health crisis will push many to drop the cost of their houses to accommodate the fresh conditions, particularly if they need to seal the deal as fast as possible. 

The housing market is already viewing a decline of (10% -15%) in prices, even though it will all depend on the gravity and span of the health crisis. Notwithstanding, the reality is that “we will experience periods whereby buyers will once again have their say” the study assures. 

Persistent low-interest rates

An added piece of great news is that to handle the crisis, central banks all over the globe will sustain admissible financial situations so long as there is no influence from inflation. 

Consequently, interest rates in the eurozone may rest at the current historic lows of 0.0% past 2022. As a result, interest rates on loans to households and trades will remain low and so will the 12-month Euribor, symbol for mortgages in Spain. 

An expert of Comprarcasa stated that “the cheapening of mortgages and the drop in the financial markets initiates the belief that the sector will remain the most appealing assets for investors and that the impact on the medium and high section of the real estate market will not last long.” 

A grant alternative in times of uncertainty

From history, once the most delicates periods are over, recovery of such a sector is often quite intense and somewhat greater than anticipated. Experts, therefore, think that the volatility hit on the financial markets coupled with the prediction of a stretched era of super-low interest rates will make the real estate sector the best alternative for investment. 

The blast of technological devices 

This season characterised by several restrictions will heighten the dedication to technological and digital devices. 

“Many real estate professionals are taking advantage of this hiatus to train staff, update their tools, and strengthen their relationships with customers thanks to technology,” the research appends. For instance, the digital payment of deposits is on the rise.  

Some holiday rental homes will divert their usage

In front of the anticipated drawback on the tourism section, there shall exist a shift from the holiday rental market to the traditional market post-COVID-19. This will ensure the availability of long-term rental apartments which inevitably will be followed by what the system calls “a natural downward adjustment of prices”.

 The expert rental authority will progress

Comprarcasa thinks that the set of criteria adopted by the Spanish government to help rental tenants, which differentiates large and small proprietors, “will unquestionably be of exceptional help to vulnerable tenants. Besides, large scale owners (possessing a large number of assets) have likewise presented their emergency plans for the most vulnerable tenants through these hard times. “This fact leads us to believe that expert asset supervision provides a more effective response than that of private owners and that the drift will be farther fortified, post-COVID-19” the study asserts.  

Simply, the most prepared will survive

Just like in other sectors, the best-prepared organisations are those that will better recuperate from this economic hit whereas the weakest companies are at the risk of disappearing. The study claims that “The technology open to real estate agents, consecutive coaching, network transactions, corresponding services, financial tools and the strength of their brand will identify survival.”

Deferral Measures in rental prices  

The crisis has obstructed some of the government top measures like controlling rent prices. 

Although MITMA, Ministry of Transport, Mobility and Urban Agenda, had planned to put forth the rental price index in the first quarter of this year, the step was suspended. 

Further Minister José Luis Ábalos has delayed bringing to Congress an “initiative to allow control of rental prices in those areas that have experienced extravagant increases”.

These measures have brought critiques from the opposition and real estate market. However, the National and international associations, economic specialists and the sector had predicted that installing control of rental prices could be a counterproductive step for the rental housing market itself.

A necessity to readdress architecture and urban planning

Lastly, the study highlights that “it is possible that the tracks left by these months of restrictions, with the event of ‘the balconies’ and the rapprochement of neighbours, will provoke inward thinking on the houses to be constructed shortly post COVID-19.

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