A portrait of a buyer at the property market in Spain has undergone significant changes if compared with the pre-crisis period. Previously, the bulk was formed by the young couples and visitors who really needed own housing and purchased it for personal use. Now among buyers dominate wealthy persons, between the ages of 30 to 50. For them real estate acquisition is as long-term investment as they hope they will recoup spent money in the future, informs ee24.com citing the Noticia.ru.
Analysts believe that the reason for this is the economic crisis taken place in Spain in 2008-2013. It burst in the country due to several reasons: the global crisis of 2008, a country’s large external debt (in 2010 it was equal to the sum of $820 billion), as well as outstanding domestic debt on mortgages. The latter factor has led to a drop of real estate prices and the formation of the market "bubble". When it had "burst", many banks were on the brink of ruin.
Today's buyers are hardly buying real estate on credit. On the rare occasions when they apply for mortgage, they look trustworthy and creditworthy customers in the eyes of the bank. According to Carlos Smerdou, Head of FORO Consultores, a change of perspectives is also related to the fact that potential buyers expected real estate prices to stabilize and begin to growth during the crisis and now they say about themselves.
Fabra Jose Garcia Montalvo, Economist notes that the average housing purchase today costs €70,000 - €80,000. This is a very modest amount that may be saved up in several years. The desire to use personal funds should generally have a positive impact on the country’s economy. The situation has changed in comparison with 2013 year, when the percentage of purchases using mortgage loans, was 40%. The economist sees the main cause in distrust for the banking system. However, Fabra Jose Garcia Montalvo does not give any specific data about the share of loans.
According to Fernando Ensinar, Analyst - the portrait of the modern investor has changed. He's not longer looking for a quick profit from reselling housing when prices slightly increase. He is more interested in rent and long-term prospects.