There has been a drop-off in prices, as the cost of housing fell by 2.8% across the country in the third quarter compared to the same period the year before. It indicates that in some areas buyers may be able to grab a bargain, while at the other end of the spectrum sellers may profit from being cautious and selling up once the market has recovered. However, prices are still rising in some regions, so it depends where people are looking to buy or sell. For example, Costa Blanca property for sale prices increased by 2.3% year-on-year and 1.3% month-on-month.
Most developers and agents do not intend to reduce the price right now. They are waiting and monitoring the situation. Almost three months of economic stagnation will lead to a decline in housing prices in Spain by 13%, in Barcelona and Madrid – by 7.5-9%. In general, I do not believe that prices will return to their previous level before 2023. The cost of buying and renting has outstripped incomes in the past few years. During 2013-2020 the price of rental housing increased in Spain by almost 50%, while the average salary rose by just 1.5%. One category of housing that’s in short supply is new builds, because the construction time has been affected by the pandemic, only resuming in mid-April. With this in mind, it’s unlikely that new builds will be available with a big discount.