The Covid-19 pandemic has brought about changes in the housingmarket, more specifically the type of homes people are looking for, as well as their locations. Highlight, from the outend, to the increased demand for new and/ or newly built homes. This is, moreover, one of the conclusions to be drawn from the latest residential study carried out by Spanish real estate firm Solvia, which analyses the types of buyers that are emerging in the new construction/construction market.
The demand for larger housing and with outdoor space, for example, gained adherents, as well as for properties located on the outskirts of large cities, given the bad experience of confinement.
According to the study, "new homes are very likely to be highly sought after in the coming months." "This is because they are the type of houses that best adapt to the characteristics currently sought: excellent qualities, more efficient, larger and more spacious, more divisions, good lighting, outdoor and extra areas such as swimming pools, sports fields, children's area, garages, storage...". Experts are also ruling out the possibility of prices falling in the near future, even predicting that they could increase.
The profile of buyers also seems to be changing with the covid-19 pandemic, as those who once chose to purchase used real estate are now interested in moving into a new home. What's more, young people are more attentive to these kinds of opportunities,as well as people who have no interest in rehabilitating old homes.
These are the six profiles of new home buyers that have emerged with the pandemic, according to Solvia:
The new construction, once "turned" to a more mature audience, "begins to arouse the interest of young couples looking for their first property". "The advantage of being able to work remotely, coupled with the fact that the assets are located in areas in development and expansion, well connected, with services and where prices are much more adjusted, are contributing to the ideal to start a new stage of life and create a family."
With the growth of remote work, many people come with good eyes the opportunity to move to the outskirts of cities and even to other municipalities or villages far from their workplaces. "Contrary to what happened before the pandemic, the location of the company no longer conditions the choice when it comes to finding a home. This will allow you to opt for a newly built property much more adapted to your needs, where they can telework in comfort and, at the same time, disconnect for the rest of the day."
The boost of telecommuting is also making second homes considered as a second residence to spend much of the year, not just on weekends or holidays. "This change in perception has made the criteria for choosing these properties much more demanding, extending the focus to new assets, thanks to the excellent opportunities that this market presents in coastal areas."
Another of the profiles that has an interest in acquiring a new house concerns people who are no longer willing to rehabilitate the house they have or to invest in a used property that needs works. "They look for certain housing characteristics that they did not have until then, and wish to have them as soon as possible, with new construction being the main option."
New and/or newly built homes are also finding elderly candidates, people who in recent months have experienced "an exceptional situation that has greatly limited their time and hobbies away from home". "The fact that new assets have renewed qualities, landscaped common areas and extras such as swimming pools or community spaces for exercise is making them take seriously. Especially if we take into account that the vast majority of these properties are located in calmer areas, with lower population density and with greater access to natural 'spaces'.
In a time of uncertainty, and with interest rates at historic lows, housing has once again been seen as a safe haven and as a good investment alternative. Solvia's study highlights, in this sense, that although "the demand for profitability has always been closely linked to used properties, now, with the growth of demand for new constructions, the private investor is looking at this market as an opportunity to obtain benefits". The best areas to invest in will be neighborhoods with affordable prices, lots of rental demand and good communication and services. That is: business centers, university areas, suburbs and dormitory cities/towns.
Source: Idealista News