The index is seasonally adjusted. The price of coastal properties surged 250% (155% inflation-adjusted) from 1996 to 2007, as hundreds of thousands of foreigners, mainly from the UK, France and Germany, bought property. As the experts explain, one of the factors that will most affect the pull on rental demand is the foreseeable fall in mortgage signatures, as a result of the banks tightening up requirements when granting new loans for the purchase of homes in a scenario of increased risk of unemployment and a general fall in the purchasing power of citizens. The same is true for the director of the Executive Programme for Real Estate Management at IE Business School, who emphasises that "the rental market began to have a lot of pull before the break, for reasons such as difficult access to financing due to strict conditions or lack of savings to pay a mortgage deposit, greater mobility among young people, due to changes in concepts such as collaborative economy or pay-per-use, and the increase of single-parent families by decision or divorce. The INE receives information each month on transfers of real estate assets within Spain approximately six weeks after the end of the data reference period, as well as revisions to previous data. Bernardos believes that the granting of mortgages will fall even more than sales (30-35%), as a result of "a notably lower demand, since when there is a crisis, families tend to increase their savings in relation to their income, and a stricter criterion in the granting of mortgages. In the period of 1997—2006, the price of housing in Spain had risen about 150% in nominal terms, equivalent to 100% growth in real terms. Have a confidential tip for our reporters? In general, the experts emphasise that the level of professionalisation of the real estate sector and the low level of debt of the companies of reference of the business are other factors that will help limit the impact of the COVID-19. Along the same lines, registrars have put the drop in transactions during April at more than 38%.Â. This opinion is also shared by the professor of economics at the University of Navarra, who stresses that "the decline will take some time, depending on how long it takes sellers to adjust their expectations of the sale price to the reality faced by potential buyers. But, as the real estate market was much more balanced than in the previous crisis, we can expect the adjustment to be much less dramatic. The worsening economic situation is widespread and has also reached the housing market which was largely paralysed during the height of the pandemic, especially evident now that the first official data on the impact of the COVID-19 have been released. After almost seven years of falling house prices, Spain’s housing market is recovering. We come from a clear lack of supply in the main economic and demographic centres and the demand will probably increase, so it is logical that there will not be strong falls in rent," says Beatriz Toribio, director general of ASVAL (the Association of Homeowners for Rental Properties). Cheap Property for … Connect to real estate Agents in Malaga, Spain on CENTURY 21 Global. Zillow, Inc. has a real estate brokerage license in multiple states. And, on the other hand, we could see the change of expensive rental housing for cheaper options, with the concentration in the same housing of former tenants who each lived in a different property..." Their numbers predict a drop in the price of rent of about 13%. METRE in the first quarter of 1987. Home prices were up just 0.8% year over year in the week ending April 11. Rental prices in 25 cities (and potential return on investment) How to buy in Spain as a foreigner A list of our real estate licenses is available here. About Alicante. The economic and real estate scenario that has been caused by the coronavirus pandemic in Spain is seemingly worsening as the weeks go by  according to experts. By contrast the regions with the fewest cases per 100,000 population -- Andalucia, the Balearic Islands and Murcia -- saw home prices climb 3.8% to 6%. "It is clear that prices are going to have to go down, because those who are not in the process of an ERTE (temporary lay-off) have lost their jobs or are at risk of losing them. 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According to Daniel Lacalle, the chief economist at the financial planning company Tressis, "it is logical to think that the price of housing will lose the increase that had accumulated between 2018 and 2019" and that there will be a double-digit drop in the price of housing due to the coronavirus. "Money is frightening and lending it even more so. Its price averages €235,000, which is 56% higher than the nationwide figure. Spanish house prices increased 0.83% during the year to end-Q2 2016 (2.07% inflation-adjusted), its third consecutive quarter of y-o-y house price rises, based on figures from TINSA.The housing market finally returned to growth in Q4 2015. de Acuna & Asociados, predicts a 6.5% drop. Use the filters above to narrow your search for luxury homes for sale in Ibiza. This index is for the resale housing market and the new housing market. Echavarren from Colliers International also expects a limited impact on new residential construction and assures that "the price will remain reasonably stable both this year and in the coming years, provided that there are no significant variations if the subrogations of development loans are not put at risk by the banks". Palma De Mallorca, Balearic Islands, 0000 Spain ... a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. A brief weekly update on the impacts of the COVID-19 pandemic on commercial real estate in Spain, reflecting all our service lines: Offices, Industrial, Capital Markets Group, Retail and Hospitality. In 2008, the real estate market started to drop fast, and house prices decreased dra… And that change will also be experienced in Spain in the upcoming months. The Christie's International Real Estate network has complete luxury home listings for Ibiza and nearby areas, including San Jose. 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