Where we’re at. Some data:
Evolution of used residential property prices in Barcelona and the Eixample district according to Habitatge.
Source: Habitatge – Property Registrars.
According to the data supplied by Property Registrars, the pandemic has not had any clear impact on the residential property market in the city of Barcelona, but data supplied by Idealista shows that there has been a slight reduction in prices, by around 5%.
The number of sales, however, decreased considerably during 2020 compared to previous years, by approximately 30%.
The residential market has proved itself to be vigorously robust despite going through one of the worst years in economic terms. Generally, property values have remained steady. However, number of sales has dropped affecting market’s liquidity. In conclusion, despite selling real estate is more difficult, steadiness of real estate prices during Covid-19 pandemia is consolidating properties as a secure asset.
So what now? Buy
Many analysts predict unusual growth in the world’s major economies after the SARS-CoV-2 pandemic. The way out through masse vaccination is now a reality and the relaxation of rules on social interactions is now happening in Spain as in other Eurozone countries. Despite there being many uncertainties regarding the consequences of the pandemic on the economy (businesses closed, Spanish unemployment rate at around 16%, the ERTE furlough scheme ending), everything points to there being a synchronised economic boom amongst the most developed countries over the coming years. GDP IMF forecast for 2021: USA and Spain: + 6%. France, UK and Canada: +5%. Italy: +4%. Germany and Japan: +3%. History shows us that economic growth follows pandemics, such as that of cholera in 1830 and the Spanish flu in 1920.
For potential property buyers, 2021 could be their year of opportunity. But there should be no hesitation, no waiting to see the consequences of the fallout from the pandemic. The ambitious expectations of owners are supported by the country’s social and economic evolution; and the financial stimuli injected by European funding coupled with a possible controlled inflation could have a direct effect on real estate over coming years. If we add to this scenario the lack of new construction in the city and the imminent arrival of tourists and foreign investors, buyers will be faced with a marked progressive increase in property prices in the city of Barcelona. It is highly likely that the quote “tomorrow better than today” will be replaced by “better today than tomorrow”. Even though the post-Covid boom will probably not be noticed over the coming months, we can already sense a change in trend within the sector. Taking advantage of any opportunities that the current property market offers and getting yourself months ahead of this change could the winning strategy.