Foreign Real Estate Demand Looks to Grow 20% During 2021
According to a recent report from pisos.com foreign real estate demand is set to grow 20% during this year thanks to the international vaccination program.
The vaccination plan together with the opening of borders this Spring is just what foreign buyers have been waiting for during the last 12 months who have been waiting patiently during lock-down to purchase a full-time residence, holiday home or rental investment.
The report suggests that it’s the holiday home market that will be the most dynamic in terms of growth through 2021, as foreign buyers look to purchase a bolthole giving them greater freedom, space and fresh air.
The first home and investment market will be linked to a greater extent to the evolution of the pandemic.
The Spanish real estate portal also forecasts that the short-term rental market will recover a large part of what was lost in 2020 as tourists choose independent tourist accommodation over hotels.
During the last year, 30% more owners put their properties on the market as long-term rentals, as the holiday sector shut down.
However in 2021, as tourists return and choose independent holiday accommodation over hotels, the holiday rentals market looks to receive a positive impact, especially in the areas of Málaga – and along the Costa del Sol, Almeria, Cádiz, Granada, Barcelona, the Balearic Islands, Tenerife and Murcia.
Ferran Font, Director of Research at pisos.com, underlines “the importance of foreign buyers on demand and growth of real estate in Spain. When you work in the sector, you understand that Spain offers a very attractive purchase proposition in terms of both full-time residential or second holiday home purchase.”
“If foreign buyers traditionally represent around 13% of the total home purchases (approx. 500,000) which are registered annually in Spain. In 2020, approximately 65,000 were affected by the Covid-19 pandemic, closed borders and the decline in foreign purchasers, which is the reason why this year we are going to notice a considerable rise once borders open up again”, concludes Ferran.
The report continues, that the main foreign stakeholders in Spanish real estate investment are British, French, Germans, Italians, Moroccans and Swedish nationals, and they will continue to dominate Spanish residential purchases by international buyers.
The report concludes that the regions most in-demand by international buyers and where we will see purchases increase are (in order): Andalucía, Catalonia, the Balearic Islands, Canary Islands, the Valencian Community, Murcia and Madrid.
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