Coronavirus Causes Property Price Reductions In Spain

British expats making a permanent move to Spain can take advantage of a fall in property prices due to the pandemic.

During the crisis, many would-be expats weren’t unable to make the move due to lockdowns and a total lack of flights. Now the Spanish wave of infections and deaths seems to be slowing, property prices in hard hit areas are falling, but those provinces with fewer infections are seeing significant property price rises.

Experts are convinced the Spanish real estate sector is in for a readjustment, although it seems the degree of the collapse may be less severe as that in 2008 even although demand is expected to be comparatively low. Local interest in moving house will be dampened down by a lack of job growth and a rise in unemployment, with Brits looking to buy at that point in time able to get discounts on already lower prices.

Regions to consider include the outskirts of Madrid, Navarra and Castilla y Leon, whilst areas least affected by the pandemic such as Andalusia, Murcia and the Balearics islands are seeing slight increases in the price of property. All had comparatively few infections and deaths, and house prices are now between 3.8 and 6 per cent higher than last year.

In the meantime, expats living along Spain’s Mediterranean coastline are overjoyed at being allowed on the beaches, even although masks and social distancing are mandatory. The Costa del Sol region is preparing to welcome British tourists, some of whom will, no doubt, be would-be expatriates desperate to flee the coronavirus chaos back in the home country.