The effects of the coronavirus pandemic have only just begun to appear in the Spanish real estate market, but the risks for the sector are increasing due to the economic and health impact derived from Covid-19, as the rating agency

Moody's

warns

in a report published this Wednesday.

The firm identifies two main consequences:

the increase in imbalances and the threat posed by illegal occupation.

Regarding this last point, Moody's considers that the social policies in favor of debtors and tenants implemented by the Government in recent months, "or those that protect illegal occupation" represent a threat to the housing market, since they "discourage private investment and damage the credit quality of the loans that back the bonds and mortgage securitizations, especially NPLs ".

In addition, according to the firm,

the pandemic has weakened the demand for housing

, creating certain imbalances in the real estate market and weakening social policies in favor of debtors and tenants.

According to his analysis, the crisis is increasing the problems of access to housing for the youngest and people with lower incomes, "since they are being the groups most affected by the pandemic in terms of job destruction."

"We expect housing demand to continue to show weakness this year, which will continue to

push prices down

, due to the increase in unemployment, the high number of workers in ERTE and the fall in investment due to the loss of tourism," it states The report.

The agency also echoes the effects that the pandemic, teleworking and confinements are having on the reorganization of spaces and the dispersal of families.

"The pandemic is modifying buyers' preference for homes outside of urban centers, single-family or new construction. We hope that this trend will continue, which will segment the demand towards this type of property to the detriment of other types of homes" , aim.

According to the criteria of The Trust Project

Know more

  • economy

  • living place

  • Coronavirus

Housing The Government will extend the mandatory extension of rental contracts and the moratorium on rents

Appeal The Constitutional Court unanimously annuls the Government's housing law decree

Catalonia elections 2021The struggle of Ciudadanos, PP and Vox for the reduced space of the non-independence right in Gerona

See links of interest

  • Holidays 2021

  • Real Madrid - Getafe, live

  • Sevilla - Barcelona, ​​the semifinal live