Spain is opening its doors to Belgians from 1 July, while travelling through France is permitted from 15 June. Many of you are therefore getting in touch with us about your plans to buy a property in Spain, and that is only natural. This is why we wanted to help you better understand the current situation and its impact on the Spanish property market.
Is investing abroad right now dangerous? Let's talk about it.
A swift and effective response
Despite what some of the Spanish population who are now protesting against the government in place have to say, Spain declared a coronavirus-related state of emergency as early as 14 March 2020, and the restrictions were severe, from the rapid closure of schools and non-essential businesses to confinement at home.
Despite the significant loss of life, the measures appear to have been proportionally more effective on Iberian soil than in our own flat country. Thus, as of 9 June, Spain, with a population of almost 47 million inhabitants, has recorded “only” 27,136 deaths, compared with 9,619 deaths in Belgium for a population of 11.5 million.
Above all, over the past 10 days, Belgium has still been recording between 10 and 20 deaths a day, while Spain is no longer reporting any.*
Statistically, the regions where our agency sells the most have been very lightly affected: 0.02% in Valencia and 0.009% in Murcia, for example, compared with 0.08% in Belgium. These figures are readily explained by the low population density, since Madrid, where the density is naturally higher, has suffered 0.13% of deaths.
*Source: Open Stats Coronavirus
A different set-up, different decisions for managing the Covid-19 crisis in Spain
Unlike a good many European countries, Spain is made up of a vast territory where the major cities are not close neighbours. Whether separated by mountain ranges or arid plains, they were thus able to avoid the kind of spread that other, less widely dispersed countries were unable to sidestep.
This also means that, in the future, should the virus suddenly reappear in a specific cluster, the risk of it spreading is lower than in Belgium.
It is for this reason that all the regions of Spain are considered individually and are not all at the same phase of easing lockdown. The country, depending on the region, sits somewhere between phase 2 and phase 3.
What does life in Spain look like today?
On 21 June, the country is expected to move into phase 3, the phase that will allow greater freedom of movement, with the reopening of shopping centres, the easing of restrictions on the hospitality sector, permission to travel between provinces, and so on.
But as of today, cinemas and theatres are open at 1/3 of their capacity, the same goes for restaurants and, a major difference with Belgium, the culture service is permitting performances of up to 400 people outdoors, all while still managing to keep the number of Covid-related deaths at 0.
And what about your property project in Spain?
It is difficult to say with certainty at this stage; however, the experts agree in forecasting a drop in prices, at least a temporary one, which Belgian investors could take advantage of.
How would this come about?
It would result from a twofold set of circumstances. On the one hand, Spain's internal property demand is in free fall given the severe economic crisis that is brewing, with Spain counting 3 million self-employed people who will be the first to be hit by the economic effects of Covid-19. This struggling group will not go ahead with the purchase they had planned. On the other hand, as a logical consequence of the first point, indebted owners will no doubt have to sell their home. And we all know: a fall in demand + available supply = a fall in prices.
This is therefore a potentially ideal moment to consider a property purchase, since the market can only rise again thereafter. We reckon the drop should last until the first quarter of 2021.
Be careful, though: while counting on a recession is a good thing, investing in this kind of situation calls for caution, and professional support is even more justified than usual.
And when it comes to the transactions, how do we go about it?
Naturally, our foremost aim is to guarantee absolute safety in future transactions, which is why, from the very first appointment, we will do everything we can to act in line with the most stringent safety standards.
Three options are available to you at the first appointment:
- we arrange an initial meeting at our premises in Namur. They are fitted out ideally in line with health recommendations: plexiglass, hand sanitiser, face masks; we look after everyone's health.
- we come to your home. Armed with our kit: hand sanitiser, face masks, even our plexiglass will come along with us!
- do you have a computer, a smartphone, a tablet? We can also meet virtually to get started.
And then? We take charge of the entire organisation of your purchase, from arranging your discovery stay through to helping you fit out your future sun-drenched nest! But let's not get ahead of ourselves and… let's arrange a first appointment already! What do you say?