SPANISH AFTER-COVID-19 HOUSING MARKET PRICES. SURVEY RESULTS

by | Apr 18, 2020 | COVID-19, Investments in Spain, News

Spanish After-Covid-19 Housing Market Prices. Survey Results.

I’d like to show you interesting survey results concerning the Spanish property market development perspectives. It was carried out by Mark Stücklin – a renowned expert in Spanish property market, the author of “Spanish Property Doctor” – column in “The Sunday Times” devoted to housing market.

Representative quota sampling of respondents numbered 607 people, including building industry investors, developers’ representatives, property owners, sellers and potential buyers.

It is worth mentioning that the survey covered the whole of the Spanish housing market, including apartments by the sea and in cities, houses in Costa del Sol and in the countryside, properties sold to foreigners and those sold on the domestic property market, etc.

• 88% of respondents expect the Spanish property market to be frozen for more than 3 months
• 94%  of those surveyed think that COVID-19 will drag down the prices on the housing market
• 92%  expect that COVID-19 crisis will impact foreign demand for a few months or a year.

The most interesting range of opinions arose when we asked the following questions:

“What will buyers do in the coming weeks/months?”

Respondents’ answers:

• 52% expect buyers will wait for prices to go down
• 20% say buyers will go ahead with their plans to buy
• 26% expect buyers will wait until the situation clears up
• 6% think they will throw in the towel forever.

“What will sellers do in the coming weeks/months?”

Respondents’ answers:

• 41% are expected to carry on as before, with no change in asking price
• 16% are expected to reduce their price expectations to try to find a buyer
• 43% are expected to take their property temporarily off the market
• 5%  will take their property permanently off the market

The respondents adequately recognized buyers expectations connected with the lowering of prices on the Spanish housing market. However, the survey results prove that lower prices are just wishful thinking. Only 16% of respondents believed that sellers (developers) would lower the prices to attract buyers. Vast majority of sellers (84%) will not change their asking price or will freeze the sale and wait until the situation on the market clears up.

 

 

SPANISH AFTER-COVID-19 HOUSING MARKET PRICES. SURVEY RESULTS