Quins impactes tindrà el coronavirus sobre les propietats immobiliàries de la Costa Brava el 2021?

Spain and the Costa Brava in particular are popular tourist destinations. The most regular among them do not hesitate to acquire second homes, especially on the Mediterranean coast. As well as having a place to stay during your holidays, owning a property on the Costa Brava is a very attractive investment.

However, the coronavirus-related health crisis has not spared any economic sector, in Spain or elsewhere. The question everyone is asking is: will the property market continue to be healthy in the future? We are going to try to deconstruct the consequences of the coronavirus on real estate and the probable price trend on the Costa Brava in 2021.

The coronavirus crisis and its impact on the economy is reminiscent of the subprime crisis in 2008.

The coronavirus and the economic crisis that the pandemic has created have had a significant impact on growth and markets. It would be difficult not to make a connection with the previous crisis, which in 2008 plunged the whole world into a great recession. It should be recalled that the latter was mainly financial in origin, resulting from the collapse of subprime mortgages .

American banks had granted an astronomical amount of housing loans without taking into account the real repayment capacities of the beneficiaries. Seemingly very profitable, these loans were then securitized, creating more excitement around them. Very quickly, the beneficiaries could no longer meet their repayments due to the variable interest rates. The whole system then collapsed, with the value of the securities plummeting.

The current crisis, although originating outside the markets, is directly affecting the economy and is spreading as containment measures are pronounced or prolonged in countries. Consumers forced to stay at home are canceling or postponing their purchases and trips .

In Europe, Spain is one of the countries most affected by the crisis. However, a property investment on the Costa Brava in 2021 can still be very profitable. Indeed, given the extent of the damage, the government has introduced very strict containment, followed by a gradual deconfinement. The property market we are interested in here is experiencing a significant drop in prices, especially inland.

On the Mediterranean coasts, at the Costa Brava, the impact is still much lower . The main reason for this is the property market in this region, which is characterized by secondary, holiday and retirement homes. Demand remains strong and steady, as the majority of buyers are foreigners and not the local population, compared to the rest of Spain or the other Costas. It is therefore quite possible to get a good deal, but it is also important to seize the opportunity.

 

Why invest in property on the Costa Brava?

Despite the consequences of the coronavirus crisis throughout 2020, several high quality properties have still been sold on the Costa Brava . The main effect of the crisis will have been to reduce the decision time for buyers. However, buyers of small and medium-sized properties will have been little or no longer present during the periods of border closures and traffic restrictions that have been put in place in the countries. Despite these difficulties, however, sales were made in 2020 and will therefore still be possible in 2021.

The advantages of investing in real estate on the Costa Brava are diverse. With the crisis, it is a region that has remained dynamic and still offers many opportunities. It also attracts many French people because of its proximity to the border and the quality of life it offers.

Spain and the Costa Brava region are places with many tourist attractions. You can enjoy almost permanent sunshine, but also a very appreciable level of purchasing power when you are French . By investing in the Costa Brava, you can benefit from a purchasing power that is 40 to 50% higher than that of the French regions.

Investors from all over the world are attracted to the Costa Brava lifestyle. They therefore decide to rent or buy properties to put up for rent later. Even the winter months are favorable, because on the Costa Brava the pace of life is maintained, whatever the season, in the bars and restaurants which are full even late at night.

Property prices on the Costa Brava are still affordable, with a slight fall noted due to the health crisis. Houses and flats can be bought as a main or secondary residence or as a rental investment . When it comes to real estate, there are always interesting negotiations when you know how to choose the right time and the right product.

Go through a real estate professional

Buying a property in Spain and especially on the Costa Brava can be a very good investment idea when you know how to do it. You can get good returns with a flat or studio with a fantastic sea view, or a villa with a swimming pool, etc. In addition to these many advantages for real estate investment, it is possible to obtain reliable and advantageous guarantees when you are accompanied by an expert in the field . The latter is familiar with the land and the procedures, so he will be able to find the best deals, especially in this period of crisis when vigilance is required.

To make a good investment on the Costa Brava, do not hesitate to contact us for sound advice. We will listen to you, study your project and objectives and provide personalized support. Immo 365 is ready to answer your various questions and will remain at your side to facilitate all administrative procedures. We also make life easier for owners who may be far away, by offering rental management as one of our services. You will no longer have to worry about how to rent your flats and houses on the Costa Brava.

In conclusion, real estate on the Costa Brava still has a bright future ahead of it, even if we have to remain captious with the current crisis. If you are accompanied by professionals, you will have a better chance of making a successful investment.