Like all sectors of the economy, the real estate sector has been deeply shaken as a result of the COVID-19 crisis and the different situations that have occurred as the pandemic has evolved.
Before society digested the impact of the confinement measures and accepted the obligation of social distancing, important changes in the behaviour of the population in different areas were already detected.
Trends and behaviors that are the most real explanation of the change of scenery to which the coronavirus has forced us. The real estate sector must be agile in this transformation and thus respond quickly to the demands of the population.
New opportunities when buying a house.
The weeks of confinement with the prohibition of non-essential movements and therefore the impossibility of visiting buildings and the social treatment caused the sector to halt abruptly.
Little by little the movement has been recovering, and in the sector important changes and trends in property searches are already beginning to be seen.
The forced commitment to the development of teleworking, online classes for young people, or the need to exercise at home, has modified the patterns of home searches in a remarkable way.
A recent study says that almost 25% of Europeans consider a change of residence as a result of this situation. Even growth in the search for second homes is expected.
Houses with garden and swimming pool, bright apartments with views, detached houses, rural houses with land to gain privacy and with the possibility of expansion. These are some of the new demands for real estate that are beginning to be requested in real estate consultants.
The new house hardly suffers.
The economic indicators that detected the slowdown in the first months of the year, highlight the fact that new housing is hardly being affected by the new reality.
The public looks for good quality housing, in gated communities with gardens, swimming pools and common areas and is willing to sacrifice distance from the city center, in exchange for a larger home or with more services.
Leaving the centre of a big city allows you to gain an extra room where you can set up your children’s office or class. The price of living in a large city is replaced with a few more meters of garden or terrace, pursuing quality of life.
It is as if some of the traditional search criteria for housing have been altered. The lack of land in cities such as Madrid, Barcelona or Valencia, makes new construction with quality homes move to neighboring neighbourhoods’ or municipalities and that is where the experts say that demand is growing.
Properties that grow in the COVID-19 era
The types of properties that have experienced the most demand in the months following the confinement have been single-family homes, houses on the coast and rural farms. Properties that add an extra to the traditional search, either by gaining more meters for extra rooms, homes with a garden, terrace, pool or views. On the contrary, the search for apartments in the mountains and apartments in more traditional communities has lost weight in importance.
Regarding the characteristics of these homes, the tendency is to gain space, if it can be exterior, the better, and if not at least it allows having the office at home in order to telework. Interest in increasing the privacy of homes is also growing. Terraces are increasingly in demand by buyers.
When getting away from the big city means more meters
The search for housing in the provincial capitals is being reduced by the need for more light, terraces, gardens or more square meters.
For this reason, many liberal professionals are consulting real estate agencies for properties in small municipalities, away from crowds and the discomforts of the big city.
The experts in real estate consulting invite you to carefully consider the space needs and characteristics of the dream home to offer a selection that is faithfully adapted to those needs.
How to rent your apartment in times of pandemic?
As with all sectors of the economy, the housing rental market in Madrid and the rest of the cities in has been transformed due to the pandemic caused by COVID-19.
The state of alarm decreed by the authorities and the subsequent confinement have limited the freedom and mobility of citizens, making it very difficult to find and offer new apartments for rent.
Similarly, the rental real estate market has seen some of its rules altered that have had to adapt to a new scenario.
The appearance of the so-called COVID clauses, which are nothing but an alteration of the rental conditions in the event of a pandemic, as a means of resolution or as an extension of the contract, are one of the most obvious consequences of the outbreak of the coronavirus in this sector.
But in addition, COVID-19 has slowed down the real estate market, which indirectly has resulted in an increase in rental interest.
The serious economic situation derived from the pandemic, which forces to seek more and better guarantees of solvency of tenants and the need to comply with careful health protocols is causing many owners to entrust the rental management to professional teams to guarantee a solvent rent and without problems.
Regulatory compliance and response to new health protocols
Since last March we have seen how the ” rules of the game ” were altered with relative frequency and the protocols defined by Health have required extreme flexibility to gradually adapt to reality and to a myriad of situations hitherto unknown.
This agility in complying with the recommendations forces the citizen to be constantly well informed. The rental housing market is not alien to this adjustment in society, so it is logical that qualified professionals in the real estate market are delegated the management of the rental as a security measure and guarantee of the correct performance of the procedure and the transaction.
The arrival of the traditional rental market for tourist apartment homes or the change in tenants’ preferences also force owners to seek greater guarantees and security in the drafting of contracts.
The organization of agendas and the management of visits (with the disinfection needs derived from this social hustle and bustle), are making more and more owners trust external consultants a comprehensive management of said rent.
The added value that real estate consultants bring to renting homes
They say that ” Time is money “, therefore, the real estate consultants thanks to the management of the so – called real estate Big Data will add a lot of value with their experience in the market.
A good consultant knows the most common searches of tenants by cities and neighborhoods and will define an estimated rental price according to the area. In the same way, you can guide us regarding the rental price of 2-bedroom homes in central Madrid or a single-family house with 3 or more bedrooms in Marbella or Sotogrande.
A professional in the real estate sector also knows the priorities of the tenants in a certain area of the city, the average time of stay in a property in the province or the number of visits necessary until they make the final decision.
All that information, together with the database or client portfolio that real estate agencies have, is a help oriented to the success in the rental of my home.
If you want to know more about all the options and possibilities that real estate consultants offer you to help you rent your home in times of a pandemic, be sure to ask. Please click here if you want more information.
Buying a home or renting: What is the trend according to current savings rates?
Faced with the search for the ideal home, many people wonder which option is the best, whether to rent or take the final step and buy a home.
Although a few years ago the level of mortgage commissions did not allow many young people to have access to a home of their own, currently the Bank suggests that it is better to buy a home than rent.
Since the beginning of the recovery from the crisis we have been through these years ago, buying a home has become the best option before renting.
This change has been noticed above all in the large cities and most important populations of our country, according to the analysis on savings rates that has been carried out in recent years since the flood of the real estate crisis in 2007.
What is the reason for this change and how is it expected to unfold in the coming months? Once again, the Bank offers us a solution to the question of whether it is better to resort to renting or buying a home as a future investment.
Increased rental cost.
The key to the turnaround that has occurred in the real estate sector in recent years is found in the increase in rental prices compared to the years before the recession.
This rise in costs has also accelerated in recent months, with an increase of more than 16% in the average price only in the first half of 2019 compared to the same period in 2018.
According to the analysis of savings rates, an important part of the savings has been allocated to the monthly payment of rental income, negatively affecting the evolution of savings during the economic recovery that we are experiencing.
Although the average saving rate of Spaniards between 2013 and 2016 was around 14.5%, in the current period we find a much lower rate, of only 1.3%, within the group of people who live for rent.
Current advantages of buying a home.
These savings rates that the Bank has analysed have been less affected by those who own a home. Whether with a mortgage or without it, the decrease in the rate is between 2.1 and 1.8% when homeowners are faced with buying a home.
Faced with the need to save for the repayment of the mortgage loan, young people have turned around the new trends in the real estate sector. The savings rates have consistently improved after the fall and subsequent recovery of the housing market, with an evolution more in line with reality that exists at this time.
Although rental price growth is beginning to regulate in large urban centers, it is still quite high in the main cities in which blue world city islamabad leads sales and rentals within the real estate market, offering the best solutions in the market.
Future trend in the real estate sector
At present we still find great financial efforts to pay the rent in large cities such as Madrid. The rent payment far exceeds 30-40% of the average salary of the family nucleus, with an increase of 23% that has been maintained up to now, but it is not ruled out that it will rise again before going down permanently.
The new trends speak of the concept of “saving for precautionary reasons”, which mainly affects young people who work with temporary contracts or who have a greater risk of losing their job.
This situation, however, is not very conducive to improving future conditions, which could not be considered within the favourable savings rates, at a time when uncertainty plagues many homes in our country.
As the end of the contract approaches, these savings rates increase considerably, becoming more variable savings when a worker signs a permanent contract.
In this case, it would also be very convenient to consider buying a home, since the total saving of the payment of a loan is favoured by the rental prices that at the moment do not seem to decrease in the main cities.
From Tajarat properties we can help you find your ideal home in large cities, whether you are thinking of investing or if you prefer to rent for the moment. Dare to take the step!