Now is the best time to invest in real estate assets
Diario de Ibiza reports that "we are currently facing a scenario of contained prices and easy access to financing, prior to a period of high inflation".
In the current situation, marked by the COVID19 pandemic, a recurring question in the real estate sector is what its prospects are. As ALISEDA states in the aforementioned report, "the experts' forecasts are very promising". "This sector will be one of those leading the economic recovery in Spain", they state.
According to this real estate group, the current situation makes real estate investment the best option. Here are some of the reasons why:
PRICES HAVE BEEN ADJUSTED
"In 2020, housing prices, after an upward trend that started in 2013, adjusted and very interesting investment opportunities have emerged. In 2021 and 2022, housing prices in Spain are expected to rebound by more than 4%, according to industry forecasts, in the heat of the economic recovery. Therefore, we are still facing contained price levels in the real estate sector, unlike what is happening in other markets such as the US, where prices have already begun to rise sharply, driven by high inflation.
PROTECTION AGAINST A PROLONGED PERIOD OF HIGH INFLATION
"Desde el Instituto de Estudios Económicos (IEE) apuntan a que la inflación en 2021 va a seguir muy condicionada por la evolución del precio del petróleo y de los productos energéticos, en general. En 2021 se espera que el IPC acabe el año en un rango entre el 2% y 2,5% en términos interanuales. Una inversión inmobiliaria garantiza por tanto el mantenimiento del valor de los ahorros de los consumidores, frente a otras alternativas como inversiones financieras o mantener el dinero en una cuenta de ahorros en un entorno inflacionista"
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EASE OF ACCESS TO FINANCE
"The purchase of a home usually requires external financing and, at present, its cost is relatively low, at negative real rates. Mortgage lending remains at historically low levels, after the 12-month Euribor, the main mortgage benchmark, closed 2020 at almost -0.5%, the lowest level in history. This situation facilitates the financing of purchase transactions at competitive prices compared to recent years, with great opportunities to acquire a mortgage at both fixed and variable rates at historically low levels".
REAL ESTATE INVESTMENT IN IBIZA
If you are thinking of buying Real Estate in Ibiza please contact us. We have the most select catalogue of properties on the island.
You can do this through a variety of channels:
- By phone at (+34) 971 339 307
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- Using this website's messaging system
Source: ALISEDA/Diario de Ibiza
