Whatever the impact of Covid-19 on the Spanish housing market, the fact remains that quality property has value, and will always find buyers, if the price is right. This fact was brought home to me recently when a quality property (pictured) that had been on the Barcelona market for three years sold in a day with several buyers after it once the price was right.
It was high-spec renovation in a good location not far from the beach in Barcelona’s Poblenou district, with appeal to all types of clients, and excellent rental potential (think yields of 5% or more) once the price fell in response to Covid-19 to a level that made sense for opportunistic investors. After three years on the market, starting above €700,000, it finally sold in a no time at all once the deal price fell below €600,000.
Whatever its faults, and whatever the future holds, Spain is one of the world’s outstanding democracies, the fourth biggest economy in Europe, and one of the most popular tourist destinations in the world. It still makes sense to buy Spanish property as an investment, or lifestyle choice, or both, if you can afford to do so, and if the price looks right. Covid-19 will not change that.
If you worry, as many do, that high inflation is on the way, then it makes sense look for investments like property that protect your wealth from inflation. Quality property in Spain fits that bill, if you can easily afford it (I don’t recommend that anyone buy property in Spain unless they can comfortably afford to do so without taking into account any rental potential).
And if you can afford it, the coronavirus crisis is bound to create some buyer opportunities, like the example above. Plus, the crazy low cost of borrowing at the moment means you can get a fixed-rate mortgage that also helps protect your wealth from inflation.