Ahead of France, USA, Canada, Australia or Switzerland, and only behind the United Kingdom.
Spain is one of the countries preferred by foreigners both to spend a vacation and to buy a house. And it seems that this maxim continues, even in the midst of the coronavirus crisis.
According to a study by the consultancy firm Knight Frank, which has conducted a survey of its clients in 44 different countries, Spain is the second favorite destination for those who are thinking of setting up outside their country of origin after the covid-19 crisis. The UK tops the list, while behind the domestic market are France, Australia, Canada, Switzerland and the USA. Other destinations that are highly mentioned among foreigners looking for a home are Portugal, New Zealand, Norway and Malta.
The choice of these countries is based mainly on their quality of life, good health and education, stable currency and political stability, as well as being easily accessible destinations.
Furthermore, in the case of Spain, there are studies that show that in the main tourist destinations on the coast the coronavirus has a lower incidence than in the countries of origin of those interested in acquiring a property. For example, Malaga, Alicante, the Balearic Islands and the Canary Islands have a lower rate of cases per 100,000 inhabitants than the United Kingdom, Belgium, Holland, Belgium, France or Germany.
And when it comes to the reasons that drive the search for a new home in these markets are the improvement of their usual family residence (it is the main argument), followed by the possibility of having better access to quality health care. The third most prominent factor is the option of acquiring a vacation home in a sunny destination, followed by business or employment reasons.
The survey indicates that, as a consequence of the pandemic, one out of every four people surveyed is considering the possibility of changing their residence in the next year, specifying that 40% of them would look for a different property but in the same city; 26% would do so in another city although in the same country, while the remaining 34% would consider the possibility of acquiring a home abroad (representing 9% of all respondents).
As Kate Everett-Allen, head of international residential research at Knight Frank, explains, "Over the past few months, we have had time to reflect on how we live and how we use space, and there is a desire among clients for more outdoor space and a home office, for example. It is inevitable that, as we move out of the blockade, these changes could have an impact on real estate markets around the world. And he warns that "foreign governments' management of the covid-19 crisis will also be a key element for second-home buyers."
More interior space and outdoor area
Among the requirements demanded by potential buyers when looking for a new home abroad, the search for large homes stands out (45% of those surveyed are more willing to buy a house or villa than before the coronavirus crisis), and especially if they are located on the coast (40% are interested in a house on the coast compared to 37% who would opt for the countryside).
In addition, nearly two-thirds of respondents believe that, after confinement, they will be more likely to work from home, which explains why 64% now consider it more important to have their own home office. And not forgetting the importance of having large garden areas and sufficient outdoor space, "since the period of confinement has tightened the links between physical and mental well-being and outdoor life. On the other hand, the study shows that there is a growing demand for the home to have some kind of annex where other members of the family can stay, "is that perhaps the covid-19 has caused the need to have close to those family members of advanced age," notes the consultant.
What is also growing is the interest in making the new home a second or even primary residence in the event of a new global coronavirus outbreak or for retirement.
Price declines in sight
Finally, more than half of those surveyed believe that residential prices will fall within 12 months, although not by much. The majority opinion is that the decline will not reach 10%. On the other hand, 25% expect them to remain stable, compared to 19% who expect housing prices to rise.
Despite this, 53% of buyers say their homebuying budget has remained stable or even increased compared to before the pandemic. According to Knight Frank, this is "likely due to the fact that, with little opportunity to consume during the confinement, some buyers probably spent less and were able to save. However, almost a third of respondents say their budgets have decreased by more than 10% since the start of the crisis, "no doubt as a result of some companies having to resort to pay cuts, reduced hours or layoffs," the consultancy concludes.
Source: idealista.com
