Spanish Real Estate Market: May 2021 News
Tourist season starts in Spain, Josep Guardiola buys a house in Barcelona, and experts give their forecasts on the market.
How quickly time flies! The last month of spring is behind us. Spain is getting ready to welcome holidaymakers, while we have prepared for you another selection of the most important and exciting real estate news. Let's go!
1. The tourist season and vaccines
On May 21 Spanish Prime Minister Pedro Sanchez announced that foreign tourists will be able to arrive in Spain from June 7. Travelers from "safe" (in terms of morbidity rate) non-EU countries will be able to enter the country without vaccination. These are citizens of Great Britain, Australia, New Zealand, Singapore, Israel, South Korea, China, and Rwanda. This list may change soon.
Foreign tourists will be able to arrive in Spain from June 7
As for everyone else, vaccines approved by the World Health Organization or the European Medicines Agency (EMA) will be accepted in Spain. At the moment, these are:
- Johnson & Johnson
2. Recovery of the real estate market
The price per square meter of housing on the Spanish coast over the past year rose by 0.5% and is estimated at € 1,751, reported by Idealista. The fastest recovery of vacation real estate prices was registered on the Balearic Islands, in Malaga and Alicante. As experts say, a year ago, the market was under stress and was "put on pause", now most customers are returning to the pending transactions.
Holiday property prices are recovering fastest in the Balearic Islands, Malaga and Alicante
The greatest decline in prices among the coastal areas are in Granada, on the Costa Almeria and the Las Palmas island.
3. More vaccines, more deals?
The Association of Estate Agents of Madrid have high hopes for the mass vaccination, which stimulates the postponed demand in the real estate market. Experts estimate that now the amount of savings of small investors wishing to spend their money for real estate is estimated at € 30 billion.
Jose Melendez Pineda, Association of Spanish Registrars: "The acceleration of vaccination will give results from the following September. By the end of the first month of autumn, the number of transactions for the purchase and sale of housing could increase by 5%."
4. The Swedes are coming to Marbella
Demand from Swedish investors for luxury homes in and around Marbella will double in 2021, as written by Idealista, citing DM Properties. Interest from their side has increased by more than 100% compared to other nationalities.
According to the report, the tax cuts announced by the Andalusian authorities (ITP and AJD, taxes on home sales) and the end of the state of alert on May 9 also played its role. DM Properties reports that many customers from Sweden are taking advantage of remote buying and selling.
5. Window view, the Internet and the beach
In general, foreign homebuyers are looking for large open spaces in Spain, according to Savills Aguirre Newman. The most important selection criterion is a view of the sea or the mountains (for 94% of buyers). Next comes the surrounding infrastructure (90%), access to high-speed internet (87%), proximity to the beach (77%), outdoor areas nearby (71%), energy efficiency (70%) and proximity to the airport (65%).
San Sebastian, unlike other major cities, becomes more expensive during the pandemic
Buyers over 60 are looking for properties in the countryside or suburbs (73% of respondents).
6. Forbidden fruit
Illegal home reservations are on the rise in Palma. Thus, according to the Majorca Daily Bulletin, in recent months the number of requests has increased by 250% despite the fact that short term tourist rentals have been forbidden for three years in older areas of Palma. By this we mean the Old Center, Paseo Marítimo, Portixol and Can Pastilla neighborhoods with their historic buildings.
Historical buildings in the center of Mallorca
There are about 300 apartments that have been declared dilapidated. Despite the ban, tourist demand is resuming. In comparison to last summer, there are virtually no offers of short term rentals. For example, an apartment in Palma downtown cost travelers €1,522 for six nights in August, including cleaning and service charge.
7. Home for Guardiola
The famous Spanish soccer coach, Josep Guardiola, although lost in the Champions League final in May, still got some prize. Guardiola bought a large mansion in the prestigious Pedralbes neighborhood of Barcelona. The head coach of Manchester City paid about €10 million for the property.
The house has an area of 741m² and a plot of 2114m². In the past the house was owned by Mexican soccer player Rafael Marquez.