The health crisis has widened the differences between buying and renting. While the price of transactions remains stable in large cities (they even rise in cities like Madrid), rents are already falling sharply in these same territories. Some discounts that already reach 10% in places like Madrid, Barcelona, Valencia or Malaga.
These are the calculations handled by the specialized portal Pisos.com, which believes that these differences are motivated by the different behavior of demand during the crisis. While the mortgaged have been able to access agile and effective aid, tenants have not had the same luck.
“This has had an impact on rental demand, especially in the large capitals, where accessibility was already very difficult. At the national level, incomes barely fall by 1% ”, explained the director of Pisos.com’s research service, Ferrán Font, in a meeting with the media.
As demand is dropping, rental homeowners are lowering their expectations. A situation that is not occurring in the case of the buy and sell, where owners “are still reluctant to lower prices, because they can usually wait and have no need,” according to Font. From Pisos.com they consider the price of the house will barely fall 2% this year, while in 2021 the reduction will be extended to 5%.
From the point of view of sales, the portal considers that they will close this year at around 400,000, which represents a drop of close to 20%. For next year, Pisos.com predicts an increase in operations of 5%, to around 425,000 transactions.
The pandemic has also been felt in the mortgage market. «Mortgages in 2020 will fall year-on-year by half that of sales, achieving a total of between 320,000 and 330,000 signatures. Looking ahead to 2021, the evolution of loans to buy a house will be linked to the macroeconomic context. A contraction of credit or a tightening of conditions is not expected, but it is obvious that financial institutions will be more cautious, so that state guarantees could make sense, “Font assured.
The director of studies of Pisos.com has stopped in this area, ensuring that measures are necessary to facilitate access to the mortgage market for young people with the ability to pay but without savings. A claim that, as reported by ABC, are also being made by promoters and banks. According to Font, “the market has expelled young people, who may be the segment that leads the recovery in the face of the flight of foreign investors.”
The truth is that uncertainty has skyrocketed in the real estate market. Legislative changes are added to the pandemic, such as the limitation of rents that the Government finalizes, which according to Font “make it very difficult to make a medium-term forecast.” The expert has rejected the imposition of these restrictions, assuring that they will arrive at a time when rental prices are already falling.