In these times, where the economy seems to fall without a parachute and Covid-19 does not end. On the contrary, a second wave seems to be coming.
Investing in a second home seems to be a crazy idea in view of the uncertainty in which we live.
In this article, we will talk about why before the second "wave of the Coronavirus" sweeps over us, investing in a second home is an opportunity and a great investment.
The current situation
Financial investment has been clearly affected by the Coronavirus Pandemic, the stock market crash caused by severe cuts in company valuations, among others. And as it could not be otherwise, it has also affected the behaviour of the housing market, and especially investment in second homes, which is not a necessary asset but by its very nature an investment or a holiday indulgence. Despite the fact that families in large cities are increasingly looking for this type of housing in order to avoid possible processes of population confinement or to combat this epidemic through teleworking in areas far from the big city, it does not seem that this will reach the point where the empty Spain will be filled by investing in second homes.
In any case, there has been an upturn, both in sales and prices, in cities and towns in the countryside, which is not expected.
So it seems reasonable to consider that such a trend is consistent enough to be consolidated and not just a passing episode.
The real estate sector on the coast
On the other hand, Covid-19 has seriously affected the buying and selling of houses on the coast, due to these reasons:
- There has been a drop in demand from the Spanish people due to the economic crisis
- Income has been diverted to savings, so investment has contracted, as a logical reaction.
- Demand from foreigners in tourist destinations has been paralysed, which during 2019 was one of every five operations in the market.
- This is due both to the lockdown in all countries (Germany, United Kingdom, France ...) and the particular severity of the virus in Spain, the housing market has been affected.
Therefore, it could be said that the real estate market is also in quarantine: it has dried up almost completely due to the uncertainty of the economy for the upcoming years, as shown by the fall in aggregate market prices since March, with decreases of 2%.
Risk or opportunity?
This whole situation has been even more evident in coastal areas, the most touristic areas where foreign buyers go.
Analysts estimate that the recovery will begin in these areas because demand from foreigners will return as soon as the situation recovers.
An explosion of operations is expected.
Therefore, before this explosion of demand can take place and prices turn upwardsThis moment is a great occasion.
Therefore, before this explosion in demand occurs and prices go up again, this is a great opportunity. So if you have plans to invest in a second home, either for your own use or for rent, now is the time.
At Grupo IPG we have a multitude of options to invest in your second home. Take a look at our website or contact us. contact with us.