MADRID – The current “moderate” adjustment in house prices makes for an excellent time to buy a second home. This is confirmed in a report from a major Spanish real estate network, which sees the current situation as a “golden opportunity”.
The real estate network is Donpiso and in the newspaper El Economista, spokesman Emiliano Bermúdez emphasises that the current situation is favourable for both sellers and buyers. Therefore, according to experts, buying a second home is currently a “bull’s eye”.
“Now is the time to buy. For buyers, it is not worth waiting for further price falls, given the risk of future interest rate hikes. And, for sellers, it is risky to wait as the price trend is downward,” says the real estate expert.
Where is it most profitable?
So, where is it most profitable to buy a second home? According to Donpiso’s expert, the Mediterranean coast is the favourite among buyers in terms of ‘popularity’. However, when it comes to returns, the coasts of Catalonia, Valencia, Murcia and the Canary Islands, with Tenerife and Gran Canaria leading the way, are the most attractive regions due to the “favourable price-tourism ratio”.
Turning to forecasts for the second housing market, the real estate network explains that tourism has helped the sector recover pre-pandemic numbers.
Rising interest rates will reduce appeal
“The Spanish real estate market is diverse. In some areas prices will fall, in others, they will remain stable, and in some, they will even rise,” says Bermúdez. He adds that “rising interest rates will also reduce interest in buying second homes.” Moreover, higher mortgage costs make financing more difficult, he emphasises.
The conclusion is that “the holiday segment has not been at the top of market priorities for many years as the pandemic led people to forego non-essentials such as second homes”. The spokesperson adds that “during crises, second homes are hit first. Furthermore, the war has not had the same effect as the pandemic,” the expert said.