The Spanish real estate market is, for many Europeans, the most-desired destination. Thus, owning a property amid paradise to spend several weeks a year is a dream come true. Although real estate was severely hit by COVID, it is now enjoying a major comeback.
But, what will the appearance of the Omicron variant bring to the equation? Read on, find out what experts say, and prepare your next move; a piece of paradise to call home might be awaiting you in Spain.
The Omicron Variant And The Markets
After the WHO (World Health Organization) declared the South-African-born Omicron variant as a growing concern, the markets echoed their claim. In the light of these statements, global markets responded with concerning numbers.
For example, listed real estate went down by 4%. In other words, the fear of a new lockdown put most business endeavors in the world on hold. Furthermore, real estate investors echoed this trend by freezing their actions in a recovering market.
As a result, the concerns of contractors and developers grew and the ongoing developments found a plateau. Likewise, the word volatility started appearing in newspapers and being heard on the streets.
Market Volatility And Beyond
What does “market volatility” mean and generate in the real estate market? Well, for starters it indicates a steep fluctuation in prices which prevents foreseeing market behavior. In this sense, indicators like inflation might begin to be a more dramatic element for European citizens.
That being said, market volatility is also the best ally of the adventurer investor. This is because those who need to have the liquidity to face new challenges are more open to negotiating property prices. On the other hand, those with the liquidity to purchase properties might be able to close the deal of a lifetime.
In that sense, making a bold move in times of crisis might ensure the business of a lifetime. For that to happen, though, you need to make sure you have the right financial advisor. Moreover, those who do receive the best financial advice might be the ones who come out of the Omicron crisis with a new, improved, economic status.
Policies And Fear
After living the pandemic and surviving the Delta variant (also labeled as a “concern variant” by the WHO), most people know that government policies are crucial for market behavior. In this sense, the shared fear of a new lockdown might be the biggest setback for a recovering market.
Indeed, the new restrictions that the Omicron variant could impose in Europe could even make it difficult for foreigners to visit Spain and vice versa. This is because free transit among European countries was one of the first things banned in 2020 to put a stop to the contagions.
Although that is past history now, the memory and consequences of those times still live in most people’s minds and pockets. Thus, newly-announced policies will be crucial, especially in the early moments of the Omicron variant, to foresee the behavior of the volatile real estate market.
Knowing, that volatility is the name of the game in times of pandemic; those who have the funds and are bold enough might close the real estate deal of a lifetime. On the other hand, those who are willing to sell might find in liquidity the best weapon to fight back in times of lockdown.
Whichever is your case, crises usually bring the best investment opportunities for those who can take advantage of them. Make a bold move and buy a piece of paradise to call home, at least, some weeks a year.