Traditionally, homes have been a safe haven for many investors. In fact, investment in housing in recent years has grown notably.
This trend continued to rise until March 2020. However, the arrival of the coronavirus and the state of alarm slowed down the investment percentage, which fell to 13% compared to the same period of the previous year.
Some Real estate agent training Experts agree that, despite the crisis, throughout 2021 the demand for housing will begin to grow, and prices, now up to 10% lower, will gradually adjust again.
That is why many people wonder if now is a good time to invest in housing before prices return to similar figures to 2019.
And, the current situation has changed the preferences of buyers and, after the days of confinement, many consider the option of buying a new house that meets their new needs (with more windows to the street, with open spaces such as terraces or balconies, with more versatile rooms or extra rooms that can be used as a workspace, etc).
In fact, at Replace as a real estate portal, we have experienced a 30% growth in the search for single-family homes, in homes of more than 80 m2 and with outdoor areas, with a garden or terrace.
This increase has also been notable in new developments, as buyers appear to be more receptive to larger, new-build properties designed with outdoor spaces.
5 reasons why it is a good time to invest in housing
If you have been looking to buy a house in any city in Spain for a long time, now you can find good opportunities. In addition, the supply of properties can be greatly expanded and, when a slight improvement in the market begins to be seen, it will be considered a good time to invest in housing.
Some reasons that can help you make the decision are:
- Greater business opportunities
Times of uncertainty and instability usually generate more movement in the real estate market. Some people decide to sell their properties to obtain liquidity, and this means that we can detect better opportunities to buy a flat or a house. As they say colloquially, “A rough sea, fishermen gain.”
Our advice? Trust professional advisers to help you find offers tailored to your budget and needs.
- The sector on the rise
During the second quarter of 2020, the real estate market practically came to a standstill. However, in summer we already started to notice a rebound in the sector, with a total of 33,201 home purchase transactions registered in August, which represented a year-on-year increase of around 6%.
Some are betting that these high figures are due to operations that were put on standby due to the coronavirus crisis, but it is also true that the demand for real estate is increasing for two reasons: first, many people want to change their house; and, secondly, small and medium investors are already predicting good opportunities.
- Safe investment
Housing is a refuge value since it is practically impossible for it to lose all its value from one day to the next. In fact, while home prices can fall, they never do so as abruptly as stocks.
In addition, investing in housing can pay off in several ways. We can buy a house or an apartment as a habitual residence, but also to use it for rent (the average profitability you can get is 3.9%) or use it as a second home. We can even buy to resell and make a profit: since 2015, the average price of apartments has risen 12%.
Due to the crisis, interest rates are currently at historic lows, so we are at a good time to ask for a mortgage. It is true that banks request more guarantees from their clients, but it is also true that they must sell their products, so if you have savings or a fixed income, it is a good time to buy a home and get a mortgage with more favorable conditions.
- More new construction
Although after the crisis of 2008 the second-hand real estate market experienced its golden moment, the arrival of the coronavirus has made us rethink our way of living.
This makes people consider new priorities when buying a home according to new social habits. For example, telecommuting convinces many people to buy in smaller cities or residential neighborhoods, away from the city center, and in new developments with larger flats and green areas.