Home » Foreign demand for second homes in Spain forecast to lead post-Covid market recovery

Foreign demand for second homes in Spain forecast to lead post-Covid market recovery

mallorca property market
Mallorca

An article at the Spanish property portal Idealista explains that foreign demand for second homes in Spain is expected to lead the recovery as Europe starts getting on top of the coronavirus pandemic.

The article quotes various industry insiders reporting a big increase in foreign interest and sales.

The British developer Taylor Wimpey with decades of experience building homes in Spain, and various projects for sale in the Balearics, and other Spanish coasts, reports that sales were up 63% in April compared to the same time last year.

Presumably Taylor Wimpey sales last April were dragged down significantly by Covid and the lockdown, which would exaggerate sales growth this year, but that is not mentioned. 

Agents Engel & Völkers in Mallorca also report record interest from foreign buyers so far this year. “This record interest from possible buyers reflects the great interest Mallorca attracts, including in difficult times like this,” says Florian Hofer, MD of Engel & Völkers in Mallorca, quoted in the article.

Also mentioned is a new report from the international agent network Remax, arguing that foreign demand will lead the post-Covid recovery in Spain, where vendors are more motivated than other European countries like Germany, France, Greece, Ireland, and Italy. Remax says that vendors have dominated the market in Spain during the pandemic, but expect the dynamic to change with a big increase in foreign buyers driving the market forward as the virus is brought under control. 

Remax also forecast that house prices will rise in most of Europe, but buck the trend in Spain, declining by 5% or more over the next 12 months.

But remember, we are not yet out of the woods with respect to the pandemic. Restrictions are easing in Spain, but other countries are still in lockdown, and travel is nowhere near back to normal. Another flare up that would keep foreign buyers away from Spain can’t be ruled out.

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