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Homes are Savings Shelters for Spaniards

The economic crisis is stimulating transactions in the housing market against all predictions.

The fall of prices is stimulating the thrifty to buy low-cost homes as an investment, not only foreigners but nationals also, of course.

The economic crisis is stimulating transactions from domestics and also overseas property investors in the housing market against all predictions. The increase in sales in April, registered by the National Statistics Institute (INE), has surprised experts and agents from the sector, who, after the disappearance of tax reductions, find only one explanation: the marked reductions in prices.

Fernando Iglesias, holder from the estate agent Tecnocasa, gives the example of the large discounts of up to 70% that are being produced in his area, where flats that used to cost 200,000 euros are being sold for 70,000. “This discount has motivated those with money to buy, who tend to pay cash and finance very little, and who don’t have confidence in the banks,” explains Iglesias.

“People with money don’t trust in the banks and they are perceiving that the purchase of flats is a good and safe investment, since the prices have fallen so much and they can always be rented out,” notes the housing expert Jose Luis Ruiz Bartolome. The analyst also reminds us that the economic fear from what happened in Cyprus has been able to be a cause of the increase in sales.

“The rescue of Cyprus and the removal of those with money there could have been the explosive that made the many that were thinking about buying take the step,” he assures. In addition, he also reminds us that these facts from the INE would respond to the operations completed between January and February, and that in their majority are not above normal. However, Julio Gil, social director of Horizone Consulting Real Estate isn’t hoping for a change in the tendency.

In the same way, the increase of the demands experienced by The Spanish Brick in recent months comes from small investors who prefer to invest in attractive markets instead of keeping capital in the bank.

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