Crises always have a strong impact on the real estate market, including that one that sells cottages and apartments in the VIP segment. Spain was no exception, so there were a few unpleasant periods in the past in this country, during which the real estate market coped with many problems.

In this article, we would like to describe what problems have affected the price of luxury apartments and how they affected the behavior of potential buyers.

Crisis in 2008

This was perhaps the most serious crisis in the entire global economy, beginning in the US and leading to the bankruptcy of many reputable banking institutions. The crisis had a negative impact on the Spanish real estate market, which occurred in the American mortgage field.

It is the situation with luxury apartments, which were not affected by the crisis. The cost of individual houses and apartments has fallen several times, so many new construction works have been suspended.

However, the 2008 crisis created unique opportunities for people, too, who were willing to take risks and invest their money in construction projects. Prices were so low that many investors made huge profits, so they bought the property cheaply and subsequently sold it at an increased cost.

Crisis in 2020

This crisis was triggered by a pandemic that negatively affected the real estate VIP market in Spain. Many transactions were suspended. Many potential buyers were forced to postpone their plans because of economic uncertainty. However, as with 2008, the crisis created new opportunities for investors in 2020, who were willing to take risks and invest their money in the purchase of apartments.

Some owners of mansions were forced to reduce their value to sell them. So this allowed investors to buy a luxury property at a low price. For example, subsequent sales of apartments with sea views in Sotogrande brought investors a good profit.

Luxury property

Impact of economic problems on consumer behavior

If new crises occur soon, they could continue to affect the Spanish luxury real estate market. However, this does not necessarily mean that the decline will permanently discourage potential buyers.

Some investors are aware of the opportunity to buy luxury homes and apartments at a lower price and benefit from the resale in the long run. However, buying luxury apartments during a recession can be risky too. The fact is that economic uncertainty can lead to further negative changes.

So people who are ready to buy a house or a commercial facility should analyze the possible risks in detail that are associated with the acquisition of luxury property during the crisis. They should carefully study the current situation, assess their financial situation and plan the possibility of raising loans for the purchase.

In addition, they will need to consult professional consultants to obtain expert opinions and advice on the current market situation. The fact is that there is always a chance that they misjudge the current state of affairs. So, a long period of crisis will lead to the fact that prices will continue to fall, so investing will be far from as profitable as they wish.

In conclusion, we would like to mention that the crises have had an impact on the Spanish property market every time. However, this does not mean that its purchase during the economic crisis is a bad decision. Buyers should analyze the current situation in the market carefully, as well as assess the risks and opportunities. So they can make effective decisions.