From Health to Housing Crisis: Real Estate Prices Drop in Spain’s Worst Affected Regions but Rise in Costa del Sol and Balearic Islands

The real estate market in Spain is heading for a crash in the regions which have worst been affected by the health crisis, such as Navarra, whilst they are increasing in the regions which have been minimally affected by the coronavirus.

THE financial media company, Bloomberg, has predicted that a housing crisis will occur in Spain after the country’s hardship in dealing with the coronavirus crisis.

Financial experts estimate that the Spanish housing market could see a fall in prices in 2020 which ranges from 6.5 per cent to 15 per cent. This will also be accompanied by a decrease of 9.5 per cent in the national GDP.

According to Bloomberg, there is data which points to a correlation between the number of total coronavirus cases and the fluctuation of real estate prices.

For example, Navarra and Castilla y Leon, two of the regions with the highest incidence rates have shown some of the largest drops in housing prices for May when compared to prices in 2019.

In a year, real estate prices in Navarra have dropped by 2.4 per cent, whereas the average rate of infection in the province was 0.81 per cent.

In Castilla y Leon, the prices have dropped by 1.7 per cent, whereas the average percentage of infection was 0.8 per cent.

Contrastingly, in the Costa del Sol and Andalucia real estate prices have seen the highest increase in the country (6 per cent) whilst the rate of infection was 0.15 per cent.

Similarly houses in the Balearic region have become more expensive by 4.2 per cent whilst the rate of infection was of 0.18 per cent.