What is the real impact of COVID-19 on the real estate market in Spain?

This question is difficult to answer because Spain is a large country and has many areas, each with its own real estate market. That is why we limit ourselves to the areas on the Costa Blanca North that we operate in.

Our working areas are:
– Altea, with the surrounding towns of Albir, Alfaz del Pi, La Nucia, Polop, Finestrat, Altea La Vella
– Moraira, with the surrounding towns of Benissa, Benitachell and Javea.

Fortunately, both areas can currently count themselves with a relatively low degree of infection and a very low mortality rate. That doesn’t mean Covid-19 doesn’t exist here! Let’s be clear about that. But the dramatic figures published by the media in Northern Europe about Spain certainly don’t apply here.

It has been a “must” to wear masks for months now. Masks must be worn everywhere besides at home and in restaurants or a terrace, and they adhere neatly to that. Social distancing is the same here as in the other European countries and the other measures are also properly monitored.

To be honest, we feel very safe here in this area. And we also hear that from customers and homeowners who are here.
We cannot judge the situation in other parts of Spain, especially the big cities. There will be some truth in that. But – as said – Spain is a large country and the distances and differences between the areas are great.

The real estate market in our working areas

For decades the areas around Moraira and Altea have been quite exclusive. Spacious, with a low population density, with lots of greenery, hilly and with a mild climate and clean air. There is no mass tourism in these areas either. Many houses are owned by Northern Europeans as second homes or rented out to holidaymakers. No tower blocks and all inclusive packages, but individual visitors.

This has an effect on the quality of the catering, the beaches, the facilities and the entertainment. All just a bit more luxurious and better organized.
As a result, the housing market in these areas has also deviated positively from other areas in Spain for decades. More stable prices, less sensitive to the economic cycle and more secure in terms of investment.

What does COVID-19 do with the real estate market?

Fear and uncertainty are never good for the real estate market. Although we notice that many people are now making the decision to buy a house in Spain faster than before. Interested people, who previously thought they might buy a house in Spain one day in the future, now often reason: “We live now, so we are going to enjoy NOW!”. And personally, I don’t blame them.

But unfortunately there are also many people who do not dare to travel to Spain and that also slows down sales. One compensates for the other, as it were. And the result is that – despite COVID-19 – the real estate market in our work areas is still in full swing.

People who think COVID-19 will cause prices to plummet in our areas are simply wrong. If you have read all of the above carefully, you will understand why. Of course there is an occasional owner who wants to get rid of his house urgently. But you also have those without COVID-19. If a price correction is predicted in Spain, it is a general statement; an average for the whole country. As with the crisis that started in 2008, when the overall figures for the real estate market in Spain seemed dramatic, our region was hardly affected by this. And the minor correction was quickly restored after the crisis.

The fact is that now there is less tension on the real estate market and that searching and buying a house in our region is currently very relaxed. In our opinion, a very good reason not to put the dreams in the fridge.

Just have a look around our websites, it´s never too early and deffinitely never too late!
For the Moraira region: www.morairainvest.com
For the Altea region: www.altea-moraira-villas.com

You can also view our digital brochure: HERE