Patrice SARDA - Expatriates AND INVESTMENT

  • We will have interesting buying opportunities in Barcelona like for Example, Ciutat Vella, El Born, Gracia, etc.

    Investment opportunities which not only depend on the location, but especially about the personal situation and the level of motivation to sell the vendor.

    Expatriates investors will be younger, with ages from 28 to 30 buyers in this market.

    These young investors tend to buy earlier during and immediately after a crisis.

    These investors will also be able to obtain favorable bank rates and low of 10, 20 or even 30 years.

    This will enable them to repay the principal at their bank, pay very little interest on loans obtained.

    It will cost almost irrelevant for these financial levers.

    In the residential sector, an average 15% decline in house prices here in Spain this year does not seem to be very optimistic.

    Lower prices, particularly in urban centers, will be above average, especially in the second and third level places, with foundations stronger demand, while the first places are better.

    In the current state, faced with this crisis, potential investors should not abandon their investment plans.

    Whether commercial or residential property, because the economy in Spain, before the crisis, was in a healthy position.

    Fewer buyers in the market combined with investors eager for opportunity means that sellers with an urgent need to move their goods will have to adjust their asking price.

    The different experiences of crises of recent years should cause us to better understand the situation,

    And here the most common and also the most relevant thing is that once the crisis ended, the recovery of the real estate industry has always been very intense, even more than expected.

    When we observe the high volatility of financial markets and interest rates are at their lowest,

    It is easy to think that the positioning in the real estate sector as an investment opportunity should strengthen after this crisis.

    In response to the crisis, the fiscal loosening and weakness of many governments interest rates,

    Should support the economies during this period that might otherwise carry a lot more economic growth shot.

    The combination of both will benefit.

    Today, the various measures taken to contain the outbreak Covid-19 in Spain seem to give good results and some interlock conditions are starting to ease.

    Some companies plan to return to operations after 45 days of detention, with the improvement of certain conditions relating to public health.

    Some of them plan to make certifications without Covid-19, which could make it work for hoteliers and retailers.

    After 45 days in detention, children can now go for an hour walk with their parents every day.

    Property rental operations continue during internment and new contracts include rent adjustments for 6 to 12 months.

    Some choose strategies that will maintain the contractual conditions as currently in place, and to develop a strategy for the renegotiation of their contract, and particularly with each tenant.

    There is considerable demand for prime assets, while some investors are active in their discretionary pocket money and money-added and opportunistic value.

    In Spain, different investors have different approaches to making acquisitions by leveraging the existing liquidity.