Covid19 and the effect on Property Sales in Spain
Good morning to you all,
This is a message from Johanna Whittaker, CEO of Compare Properties Spain, enclosed is also the latest report from a journal issued in Spain.
I have chosen to do this report as I have been receiving queries from various clients in relation to property purchases in Spain. These questions were in relation to whether the existing agreements on sales are still going ahead, whether enquiries on properties are still existent and whether property prices in Spain will decline after this "attack on our health". I do not have a crystal ball, however, I have lived through two prior recessions in Spain. The recession of the 1980´s during teenage years as a daughter of a self-employed business man in Spain and the recession of 2008 whist I worked within the banking industry. Most of you are aware that I worked for two Spanish banks, Caja Madrid (Bankia) and Banco Halifax Hispania (Halifax Bank), providing mortgages to non-resident clients from European origin. I have also worked within the Currency market over the years from 2010-2013 establishing the Branch of Currencies Direct in Moraira.
Existing agreements on sales are still going ahead in Spain, they are at present being postponed, all of you took my advice and signed a Power of Attorney with Lextax Consulting S.L. and Juan Jose Martinez, hence the property can be purchased without you being present at the notary. I appreciate that some of you will be mentioning that the rate Sterling to Euro has declined since Covid19, this is true, I recommend you contact the Currency Company, Global Reach Group and speak to Patrick Postill and ask for information on a Rate watch and a Forward Contract, if you need further advice on this, do email me please and take advantage of my knowledge within this sector.
Mortgages approved are still approved by the banks. Those of you who have a mortgage approved, this is still approved and you have no fear of this being modified. As you are aware, I can continue to work, hence surveys are still being carried out. It is a perfect time to request for a mortgage as the banks have been given the incentive to provide mortgages by the Spanish Government, there are one or two factors to take into account, but again speak to me and allow me to request the mortgage on your behalf.
In relation to property sales in Spain and property prices in Spain. Let me provide you all with the information that I have in Spain of my experience so far. I am still conducting Virtual viewings, today alone I have closed on a sale of a property in the Costa Blanca North area and the seller is not providing a large reduction in price. The difference between the asking price and the selling price is just over the 5%, from 449.000 euros to 420.000 euros. I have also still got a number of existing clients wishing to view properties in my diary, some of you have modified your date and others are maintaining those visiting dates. At present I can continue doing normal viewings from the 26th April 2020.
If I was to predict and put my money on any movement on the market in Spain, this will be reflected on the properties just under the 250.000 euros, those second-homes which no-one was planning on turning into a permanent home. There may be a surge on properties on the market within this category within the next couple of months, hence a visit to Spain in June is an ideal time. The Spanish residents are resilient, this hit by Covid19 is one which affects the World Wide hence it will be interesting to see the outcome of those who had plans to leave Spain in the near future and whether they choose to continue to sell their property and move back to the U.K. Their incentive at present is the currency exchange as their Euros to Sterling is in their benefit. However, the U.K. cost of living is far higher than in Spain. We are talking of course as this newsletter is orientated towards the British public, however, let us not forget that German, Dutch, Belgium, French are also purchasers in Spain and I have experience an increase in enquiries from British and French clients during the Covid19 lockdown.
The Spanish Government has increased our lockdown to the 25th April, however, this is to cover the Easter Break. Why you ask? There are various reasons for this, most are due to the fact that although we have seen an already reduction in our cases of Covid19 due to the confinement, Sanchez wants to provide a breathing space for the Medical staff and avoid a surge in cases in the near future. It is also a clever tactic by Sanchez as most of you are aware Easter Holidays are an incentive for Spanish local tourism to drive to the coastal areas. Mainly Madrileños and in-land territories which are the most affected in Spain. The Easter School holidays run from 16th to the 26th April, it is obvious why he has expanded the confinement, though the strict confinement is until the 13th of April, from this date most businesses will be able to return to work, except those in the catering business, shops, etc which are aimed at the public as recreational activies and schools remain closed until the 26th April. Hence Sanchez wants to keep the children and those wanting to enjoy Easter at home allowing the rest of us to continue working. A clever plan indeed and I congratulate our Government on this.
The self-employed are allowed to continue to work unless within the recreational group of businesses even at today´s date, hence Compare Properties Spain is still working and here to assist you with any enquiry. Feel free to voice your opinions to me on this newsletter, I am always opened to criticism as this helps a person to learn.
In the meantime, do keep safe in the U.K. and do keep to the rules. Remember your next holiday depends on this, if you don´t get rid of Covid19 no-one is going to allow you to visit their country on holiday and by July and August you will seriously start to regret not staying at home.
The Extract from the Spanish newspaper in English for you all https://english.elpais.com/
Warmest regards to you all,
Johanna Whittaker
