CaixaBank Research predicts that although the real estate sector will not be one of the most affected by Covid-19, the pandemic will have consequences. The report warns of a drop in sales of between 30 percent and 40 percent for the year. After the lockdown, construction activity has been one of the fastest to resume activity as investors move to finish that were already underway, but there’s been a notable slowdown in new projects getting underway.
For this reason, there’s an expectation that new construction permits could fall by as much as 40 percent in 2020. There will likely be a negative effect on demand levels, given the context of uncertainty. This will be reflected in reduced demand for residential properties, leading to a cumulative adjust during 2020 and 2021 of between 6 percent and 9 percent.
