How is the real estate sector in Spain? Let's review the main cities

El real estate market Spanish has suffered a small recession caused by the coronavirus crisis, a crisis that is being overcome with great vigour. Such is the recovery of this sector that some experts predict a new “boom” of the real estate market in Spain that could last until 2024 or more.

After an analysis of the data from 2020 and the beginning of 2021, we can see how the recession suffered has been rather “light”, at least lighter than the forecasts indicated. Specifically, the crisis caused by Covid-19 led to a 14.5% drop in transactions carried out, a far cry from the 33% seen in 2008.

They exist several conditions which make it easier to arrive at the scenario we proposed in the introduction. Aspects such as the willingness of banks to grant mortgages, a scarce excess of supply, low interest rates and the existence of an upper-middle and upper-middle class population with a strong interest in buying and investing in this sector, all of these help to move this market towards a new “golden age”.

The main condition for us to see a new boom and it lasts for a few years are interests, if these are maintained lows the real estate market will advance gradually.

The fact that a new growth of the real estate sector can give rise to old nightmares and think that this boom could lead to a new crisis and its corresponding fall in the sector as it happened in 2008. However, experts believe that for such a scenario to become a reality, banks should finance even individuals with little prospects of being able to pay the mortgage if interest increases, a condition that They dismiss experts categorically.

Experts point to 2021 and 2022 as the period of time in which transactions in this market They will increase until you reach the level, or even surpass, to the number of transactions made during 2019. This will be mainly due to an increase in supply, an increase in confidence thanks to the rapid economic recovery and the willingness of banks to offer loans.

Main cities

You don't need to be an expert in real estate sector to know that one of the most important factors to consider before making an investment in this market is to choose the zone correct. Choosing between one location or another will directly affect the perceived profitability of the property and its future valuation.

In Spain, it is the big cities, or at least the main ones in our country, that have the eye of investors due to the following aspects.

Barcelona

Barcelona tops the list of the real estate market and the truth is that it is no surprise to anyone, since the city is still a great attractive destination for all types of tenants. Some of the main aspects that position the Catalan city so well are its excellent public and health services, its stability for businesses and its high returns associated with low risks.

Madrid

Obviously, we couldn't ignore our precious capital, which is still a great alternative in the real estate market, especially thanks to its wide and varied offer. Madrid has become the target of several important foreign investments, probably motivated by the quality-price ratio offered by this city.

Malaga

This city is known as the new star of the real estate sector, this is due to the great tourist growth that the city has experienced in recent years, an aspect that undoubtedly attracts the attention of investors and invites them to support the Andalusian city. The great variety in terms of architecture, styles and price facilitate real estate investment in the city.

Valencia

The real estate market in the city is at its best, as many investors are studying Valencia as a possible alternative to make an investment. Aspects such as its climate, its beaches or its cultural offer make it such an attractive city to receive investments of this type.

In fact, we ourselves at Reental have real estate in this city, which are highly profitable and benefit from the unparalleled aspects of Valencia.

Alicante

Alicante is undoubtedly a city that foreign investors have their eye on, since 51% of investors in Alicante are foreigners who have been able to see the great potential that this city offers. Aspects such as its great climate, its affordable prices and its port invite investments to be made in the real estate market.

Bilbao

We cannot abandon the list of cities with great potential without mentioning Bilbao, the city that has been slowly making its way as an alternative for investments in the real estate sector. The main reason that makes it easier to invest in it is that it is in the ranking of the best areas to invest in in Spain.

As we have been able to see in Spain, the real estate sector is so large and important that it has been able to withstand a blow as strong as the pandemic has been. Not only has it withstood the decline, but it has also risen even stronger and with great prospects for the future.

At Reental we are constantly looking for the best investment opportunities throughout Spain, so we recommend that you regularly take a look at the offer of real estate to be able to join the investors who are present in the cities we have mentioned.

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