Wed. Sep 20th, 2023
    Properties Inherited in Spain: Impact on Real Estate Market

    According to a study conducted by Fotocasa Research, inherited properties currently account for 17% of the available supply in the Spanish real estate market, both for sale and rent. It is estimated that heirs are responsible for approximately 23% of property sales and 11% of rental properties. Surprisingly, these figures indicate that inherited properties have a higher demand in the sales market compared to the rental market.

    Despite the scarcity of available properties, Fotocasa considers it positive that inherited properties are being put on the market, whether for sale or rent. However, they highlight a “greater tension” in the rental market, as heirs tend to avoid the issues associated with renting and prefer to sell the property. This results in a lack of rental properties available.

    MarĂ­a Matos, Director of Studies and spokesperson for Fotocasa, emphasizes the need for collaboration between the public administration and the private sector to create a climate of stability and legal security for property owners who decide to rent their homes. This would prevent a missed opportunity for an expansion of the rental market.

    According to the study, there are two main reasons why heirs choose to sell rather than rent inherited properties: personal reasons and concerns about rental collection issues. Although personal reasons have decreased in recent years, there has been an increase in the fear of problems related to rental properties.

    In terms of difficulties faced by selling heirs, high prices and the work of real estate agencies are the main obstacles. The location of the property is also mentioned as another factor to consider.

    On the other hand, the main reasons for choosing to rent rather than sell are utilizing it as a source of income, preferring the property to be occupied, and the profitability that rentals offer. However, these motives have experienced a notable decline compared to previous years.

    In conclusion, inherited properties represent a significant portion of the available supply in the Spanish real estate market. While it is positive that these properties are entering the market, it is essential to work towards creating a climate of stability and legal security to encourage the rental of these properties and prevent a shortage in this sector.

    – Fotocasa Research.