Real Estate Market Trends for 2021
The impact of the pandemic on the Real Estate market will continue, although the early arrival of the vaccine arouses some optimism.
The main trends are led by the uncertainty about the rental regulatory framework, the scarce foreign investment, and the search for homes far from urban centers.
The arrival of the pandemic has generated changes in society and in our behavior, such as the acceleration of digitization in all businesses, the demand for digital services, teleworking and distancing measures, all of which have had a great impact on the society.
With all this data we can draw some conclusions about the current real estate panorama and what impacts generated by the pandemic we can expect for this year.
Search for housing in areas with low population density
The comfort of home, open spaces and far from urban centers have taken a greater role in the population group. Many have realized that their current homes do not meet these new needs, and that is why they are actively searching for a home that meets these needs. This trend will continue during the first quarter of the year.
The main factors that are taken into account when buying a property are: spacious and exterior bright spaces, with extra rooms to use as an office, and energy efficiency. Due to these needs, there has been a greater interest in Villas, new construction and single family homes located in the outskirts of the cities. According to the Property Registry College, a test that contrasts this trend is that, during the last quarter of 2020, the acquisition of single-family homes accounted for 21% of all transactions, marking an all-time high.
Also, there has been an increase in the search for homes or second homes in rural areas with low population density. The main objective is to have an alternative to vacation and also to make investments in the medium and long term.
The rental market in uncertainty
Since the second quarter of 2020, the supply of rental properties has been increasing, due in large part to the transfer of tourist rental apartments for long-term rental.
According to the valuation institute, rental prices in the main cities have seen a reduction of 5%. This has been driven by increased supply and decreased demand for apartments for rent. However, the implementation of the vaccine for COVID-19 generates a certain degree of optimism in the real estate market since it could generate a slowdown in the rate of falls in rental prices, especially if presence is resumed in offices and universities and shops.
The foreign real estate market
The data according to the General Council of Notaries reflects a decrease of 37.4% year-on-year in the sale of housing by foreign buyers during the last half of 2020, marking a small setback after the last increase we observed in the second half of 2019 .
62.4% of the operations were executed by resident foreigners. On the other hand, the operations corresponding to non-resident foreigners make up 37.6% of the operations, showing a decrease of 42.6% compared to the previous year.
These data show the sad reality and clear evidence of the impact that restrictions to travel between countries and the uncertainty about the evolution of the pandemic have generated in the Spanish real estate market. It is speculated that as long as the restrictions continue, these figures will be maintained. Although experts affirm that in the medium and long term, as we progress and overcome this pandemic, Spain will once again be one of the main sources of real estate investment, thanks to factors such as climate, quality of life and coastal areas as a differentiating factor.
The digitization of the real estate sector
The trend in the real estate sector is focused on increasing the online presence, less face-to-face contact and more digital activity during Real Estate transactions. New technologies will form a fundamental part during this process, promoted by startups like Vitrio that have contributed in the digital field, such as virtual visits, video conferences, monetary transactions with greater security, among others.
Despite recent restrictions and limitations, digital services are what have allowed the activity of the real estate sector to continue operating moderately. Real estate agents were also able to take advantage of technology, such as using AI-powered chatbots to offer personalized and more effective attention, and the automation of communication through email marketing platforms.
Conclusion
It is clear that the real estate in Marbella will not be the same at least during the first half of 2021, but if you read carefully the trends that will predominate this year and develop the appropriate strategies adapting your business to new needs, you will be able to withstand this hard blow that the economy is suffering. If you have done your homework, you will surely already know that one of the trends for this first quarter will be ???? bargains or real estate opportunities as well as ???? bank repossessions, whether you are a buyer or seller.
Tags: 2021
