The events surrounding the COVID-19 pandemic created attractive investment opportunities in Spain, compared to other European countries, particularly in the real estate market. The economic crisis following the pandemic pushed local and international companies to act to realize assets to improve cash flow. As a result, we see that the return on assets rose while financing costs remained very low.
Due to the economic crisis in the country, the conditions for credit in the real estate market have grown tighter, which has put pressure on real estate owners and led to decreased purchasing power in the market. Spanish banks have once again begun making less expensive financing available for investments which makes it possible to take advantage of the low prices for purchases with good financing terms.
Investments in income-producing real estate in Spain are divided between large investment organizations and smaller players, with an interim market of EUR 3-20 million, in which there is a relatively low level of demand due to the nature of the investors in the market.
Additionally, the forecasts of the International Monetary Fund indicate significant recovery of growth in Spain in 2021 and 2022, with an anticipated increase in prices.