“I believe Málaga will be one of the first cities in Spain to get back after this pandemia is over”

We are currently in the middle of the so called ‘second wave’ of this pandemia, and the population will get the vaccine around the world along 2021. Under these circumstances, every single detail has a repercussion in everything, and economy and real estate are not an exception.

From Ramallo Abogados, we want to answer some FAQs which are common between the buyers at this scenario:

– How would you consider the situation for people who, regardless Spanish or foreign citizens, are wondering to get a property? Is it a proper moment for buying or selling? 

It’s more a time for buying than selling, but first of all, it would be essential to check every personal circumstances, even more after this complex time, and also the offer we are talking about. Ending 2019, the real estate market in Spain was on the highest point since the last crisis time in 2008 when Lehman Brothers’s bankrupt. It is true there were some differences comparing with that real estate boom before 2008, but it was a more expensive time to acquire a property than now. 

– Do you see any difference between the traditional real estate market and nowadays? 

Real estate market is getting a big change about the preferences between buyers. New-build properties and new-built projects are having more supporters than already-built properties when people are looking for a property. 

Also, the new technologies development and the nowadays situation, the increase of videocalls for business because of Covid-19, quarantine periods if you travel, trip restrictions, PCR fees… people are buying and selling not being present in any signature and any office appointment, or just being represented by lawyers with a power of attorney. 

-Why do you consider this change of perspective is happening when people are thinking to acquire a property? 

This is happening, among other reasons, because bank control is harder and higher than before 2008.  But also because of the own real estate. When you buy an apartment which is already built, you also buy their installation problems, deterioration because of the pass of the time… When you are buying something as a new-built property, it will be new materials, designs, building skills… and also, as I mentioned before, easier payment procedures and guarantees which you don’t find when they are being sold by another owner instead of a real estate agency or builder.

-What would you advise someone who is thinking to buy but still unsure about it? 

Whoever is thinking to own an apartment and does not know what to do or decide, I would recommend to check quietly the real estate market: prices/m2, areas, investment percent… and also, their own budget. When you are buying a property, you should have the 10/12% property selling price to cover the linked spends, and also, to hire a professional legal advisor and know clearly what are you going to sign and get. That’s the best way to avoid unexpected situations and bitter news. This is very important and more during this time, because of possible lockdowns, stopping building works by Government decisions… And further than that, everything is not about having or not enough savings for the first payment and associated expenses, but also feeling able to still paying if any ERTE or similar situation which can affects our monthly incomes.

Having all of this in mind, I would recommend always to buy according to our budget and not squeezing ourselves to get a better property which may not be according to our economy and can become a trouble in the future. 

-Focusing about Málaga province, and that kind of buyers who are thinking to buy as an investment instead of moving to Spain, would you recommend to get a property in Málaga city or outskirt areas and towns? 

Málaga city was already based before the pandemia, and checking the investors behaviours, not only big projects but also private investors, Málaga is not more a passing city and has become an important focus to stay and develop business. Good weather, climate conditions, interesting gastronomy, mix of cultures, in the middle of the world map, excellent connections by plane with the whole world, motorways, trains daily with Madrid and Barcelona, ferries from Africa…  

I believe Málaga will be one of the first cities in Spain to get back after this pandemia is over.

-You were quoting the new-built guarantees before instead of already-built properties, could you be a bit deeper about this and know those benefits you were referring?

The main guarantee is the new instead of something old or already used, I mean, nowadays skills are more advanced than 20 years ago. Also, the law rules about access, emergency areas, parking, common areas… everything will be according to law and it is something you don’t find always when already-built properties you are talking about, as our acts of law about it change in a very dynamic way, too dynamic sometimes.

And about the financial reasons, all new-built constructions are endorsed by a bank, which is not something new, but it has a lot of more control than before. The same for the companies when are required to request different licenses. 

Not trying to make a rainbow about new-built properties and the opposite for already-built, I could mention a negative point about new-built properties, and it is about the location. If you want to get something at the historical city center or the neuralgic city center, it is very difficult because there is not available floor, and if there is because something is demolished, the price will be over the clouds…

-Do you think prices will get higher once the population has already got the vaccine, or will the real estate market increase prices already before or after this to happen? 

Of course, I pointed it out at the beginning of the interview. Málaga, before pandemia, was a very important investment point in Spain, therefore it will be again once the restrictions are out. That’s for sure.

From Ramallo Abogados, we really hope these words make clearer and better the knowing and the issues you need to be aware if you are thinking to buy a property in Spain, and we will be happy to advise you and handle any sale you are wondering to make in Málaga or Marbella since the beginning of all, which is to find the best opportunity for you.

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