Spain will maintain the price of housing despite the crisis due to COVID-19

The used house will fall 15% while the price of the new ones will remain

Regarding the Coronavirus health crisis, the Spanish economy faces a very complicated situation in every way. One of the affected sectors will be residential, since used homes can register drops of up to 15% in the final price. Consequently, the real estate portals have observed a slight decrease in the price in 25% of the offers.

However, new homes are expected to maintain a stable price in the coming months. Regarding the production of the houses, the demand has increased to a total of 120,000 units per year. Meanwhile, the construction ratio per 1,000 inhabitants is at historic lows, with less than 2 homes per 1,000 inhabitants. In this way, house prices will not undergo major changes, but rather specific adjustments will be made in areas with low demand.

The impact of the pandemic in the country can cause citizens to look for areas with a lower population density to live, so that the relationship between client and home is completely modified. Finally, it should be noted that the sale of homes in recent months has been paralyzed, so the reduction in second-hand units sold could reach 50% this year. Despite this, experts assure that, after the period of confinement, the supply and demand for housing will return to normal.

 B Law & Tax
International Tax & Legal Advisors

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Tags: Spain, Coronavirus, Goverment, Health crisis, Expatriate advising, tax advice madrid, Housing, Price