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Spain continues to have "potential" to attract international investors
11 May 2020 |

The Covid-19 pandemic crisis tends to be brief and intense and the economic recovery accelerated. And real estate investment will play a role in this recovery, since «Spain continues to have a great potential to attract international investors», believes Ángel Berges, vice-president at AFI.

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For Roberto Rey, GLOVAL’s president and CEO, and also one of the speakers at the latest SIMAPRO Home Edition, the country is attractive because it offers «the investors legal security. We cannot keep questioning already established consensuses since this can only generate uncertainty and mistrust», he concluded.

The role played by investment funds in boosting the real estate market has, according to Santos González, president of the Asociación Hipotecaria Española (Spanish Mortgage Association), been «providential», not only in terms of boosting it but also in terms of modernising it. «There is one part of the real estate business that needs alternative investment. The traditional finance sector cannot absorb all mortgage debt», he pointed out. An assessment shared by Ángel Berges, except when, «occasionally», some of these funds, «burn certain market segments».

According to Roberto Rey, this crisis may «bring new changes and accelerate the trends that were already in place». In his opinion, «there are many people who are unable to buy a house and need an alternative. Right now, there is a very important need for affordable housing, for which a public-private partnership is essential».

Despite the fact that «families’ gross income is dropping considerably», which will affect house purchasing, Ángel Berges considered that «following this drop, there will be a strong comeback, because there is significant demand just waiting». An argument shared by Santos González, who agrees with this «expectant demand» which is only waiting for the best opportunity «to return to the market, which will depend on the signs of confidence passed on by our Government».

The banks’ situation will help the recovery from the crisis

For Roberto Rey, «if we manage to control the sanitary and economic situation, we will leave this crisis appropriately behind us. In the meanwhile, the banks’ sanitised situation will be of great help».

On this point, the president of the Asociación Hipotecaria Española (Spanish Mortgage Association), explained that «following the 2008 crisis, we have a liquid financial system, sanitised and especially solvent. It is likely that due to the current crisis, the institutions’ numbers are not exactly good, but the financial system’s solvency is a given and I am sure that it will provide essential support to the recovery of our economy». González manifested his confidence that, at least during this year, the mortgage loan portfolio will work reasonably well. «If the crisis is extended it will affect the beginning of construction works and the issuing of new licenses since developers discount expectations. A recovery in V will not be the same as a recovery in U or in asymmetrical V».

Nevertheless, for Roberto Rey, real estate will continue to be a shelter for investment, «since interest rates will remain low».