Spain's New Buildings Shortage: Real Estate Will Not Get Cheaper

Over the past 4 months, the volume of real estate sales in Spain has increased. During the pandemic, real estate was actively purchased by Europeans, and now there are more and more clients from Ukraine and Russia. This situation has arisen due to deferred demand. In addition, real estate in Spain is increasingly being purchased because of a residence permit. With a residence permit, you can enter Spain at any time. Now Spanish developers are trying to complete and deliver projects as soon as possible in order to start building new ones, since at the moment the demand for real estate in Spain exceeds supply.

How have property prices changed in Spain?

Many expected prices to fall during the pandemic, but the opposite happened: real estate in Spain is only getting more expensive. Developers are now building with their own funds without bank loans. Prices for new buildings will steadily rise over the next 10 years. This is due to the fact that there are fewer plots of land for construction. Even during the quarantine, the cost of land increased by 2%.

How to get to Spain?

To enter Spain as a tourist, you must be vaccinated twice. Also, with a residence permit or citizenship, you can enter Spain at any time.

Have Ukrainians in Spain stopped receiving mortgages?

Spanish banks have stopped lending to Ukrainian citizens, but there is a loophole to get a mortgage. Banks approve lending if you have a residence permit. Our clients first apply for a residence permit, having a reserve contract with the developer. A residence permit is issued in a maximum of 3 months. And having a residence permit, you can already apply for a mortgage. More information about the situation on the Spanish market, buying real estate online, as well as a presentation of the most interesting properties can be viewed in the webinar with the Spanish developer Sunnier (Grupo Mahersol) in the recording.