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Should you be selling overseas property in Spain in 2020?
There is no good or bad time to be selling overseas property in Spain. It depends on your personal circumstances, financial situation and other considerations.
For instance, we know many Brits and Irish expats who have fallen out of love with Spain after years of staying there and want to move back home.
There are couples who have recently been through a divorce and are forced into selling overseas property in Spain as a part of the divorce settlement.
Then you have highly sophisticated overseas property investors, who buy when prices are low and sell when market sentiments change for the better. They are in it to make money – big money – by flipping overseas properties, in the relentless quest for profits.
Regardless, whether you’re on the buy side or sell side, it would help to know what the Spanish overseas property market trends are, so far in 2020, now that the year has well gotten underway. Let’s begin.
Spain Overseas Property Market Trends 2020
#1: Brexit is done. That’s good!
The question over Brexit – will it or won’t it happen – had cast a shadow over the property market in Spain for the last 4 years. That is understandable since Britons are the biggest players in the Spanish overseas property market, whether on the buy side or the sell. Because of the cloud over Brexit, many British expats were put in a fix. The fall in the value of the Pound Sterling in the aftermath of the Brexit vote meant they had less buying power. That also resulted in many putting up their Spanish properties for sale – driving down prices across the board. Finally, that uncertainty is gone and Britons can get back to buying and selling overseas property in Spain.
#2: Foreign interest is up! (In spite of CaronaVirus)
Regardless of the scare over the CaronaVirus coming from China, is it clear that the foreign interest in Spanish properties is up. Buyers are coming from everywhere – Sweden, Norway, Britain, of course, Russia, Middle East, and even China.
However, it is a fact that CaronaVirus has been a real dampener, affecting market sentiments just when things were getting better. Tourism across the world has been down this month and most flights to and from China have been cancelled.
The fear over CaronaVirus is only temporary, so the markets should pick up soon. And when it does, there will be no dearth of cash rich high net worth foreign investors looking to buy a second home or holiday home in Spain.
Big cities such as Barcelona, Valencia and Madrid, popular tourist haunts such as Alicante, Gerona, Malaga, Zaragoza, coastal regions such as Costa del Sol and islands such as the Canary Islands are likely to be the biggest beneficiaries.
#3: The Rental Market is Stable.
Usually, the rental market and the overseas property market feed upon each other. When rental prices are up, so are the prices of overseas properties put up for sale.
Rental prices in Spain have gone up significantly last couple of years. They are likely to stabilize this year and the focus may shift to the overseas property market. Wealthy foreign investors would rather buy a second home outright than buy one.
#4: The Dilemma Over Catalonia.
There is indeed a great deal of tension in Spain over the fate of the province of Catalonia, where a sizeable section of the population wants independence. Barcelona is the capital of Catalonia and is one of the best places to live in the world.
The good news is, this is likely to remain a peaceful agitation. We don’t expect foreign investors to be affected in any way. After all, the clamor for an independent Catalonia has been around for close to 50 years now and is unlikely to go away.
The intense rivalry between Real Madrid and Barcelona FC is very much a reflection of the tension between Catalonia and the rest of Spain. It should not have any bearing on foreign investors who wish to buy a lovely apartment or two in Barcelona!
Do contact an overseas property specialist to know more about selling overseas property in Spain this year.