The real estate sector in Spain is beginning to recover slightly
The drop in operations moderated in August, after the sharp drops in the previous months
This circumstance is already beginning to be reflected in the data from the National Institute of Statistics (INE), which show a significant moderation in the fall of the sector in August, proof that the real estate sector is beginning to recover slightly from the hard blow caused by the confinement . The drop in operations moderated to 12.1% in August. The figure is still considerable, but it represents a considerable improvement compared to the 32.4% drop in July or the 48% drop in May.
New housing is the one that is undoubtedly showing the greatest dynamism in the market. These types of operations grew by 6.4% in August compared to the same month of the previous year, while those of second-hand homes fell by 16.1%.
What accounts for this difference? Experts point out that the seller of a second-hand home can resist selling now, trusting that the economic situation will improve in the coming months and allow them to obtain a greater profitability from their property. In parallel, the months of confinement have meant a change in the needs of the applicants, who are more focused on new buildings, which are usually larger, brighter and more open. This type of property is more prepared to satisfy the new demands that have arisen as a result of the confinement and the change of life of the citizens.
The future of the sector
The digital transformation of the real estate sector
Looking ahead, the pace of the economy’s recovery will set the pace for the real estate market. Contrary to the 2008 crisis, it does not appear that this sector will be the most damaged by COVID-19. Operations that have come to a standstill may recover if the economy picks up pace and employment recovers. The market is also more diversified, specialized and professionalized.
In any case, real estate will have to adapt to the new reality. This will require more investment in technology and digitization. The technological revolution that has taken place in recent years has allowed trends such as Artificial Intelligence, Big Data and Virtual Reality to change the logic and mechanisms that made the Spanish real estate industry work. And this trend has accelerated with the COVID-19 crisis.
Marbella WOHNEN Immobilien is a highly qualified real estate agent in Marbella specialized in providing the best customer service and defending their interests