Why buying a property in summer is a good or bad idea

During the summer holidays, some people have more time to compare, visit and buy a property. So, is summer a good time to buy a house? Which areas are the best? According to the experts we consulted, summer may not be the best time in economic terms. But, on a personal level, as buyers have more time available, thanks to the intensive working days and more hours of natural light, it can be a good time to find the property you need.

Like anything else, this also depends on market fluctuations and individual needs. In this case, Lorena Andrea Zenklussen, CEO of Comprarcasa España, states that economically speaking, it may not be the best time, as buyers often have less financial leeway.

"When finance is not an issue, summer can be the best time to look for a home. With intensive working days, potential buyers have time for viewings and making decisions, so the process is much smoother."

For his part, Ernesto Ferrer-Bonsoms, Real Estate Business Director at Solvia, believes that it is not uncommon for many of the properties that are for sale in other months to be used for holiday homes; due to this, supply decreases, resulting in a consequent price increase. As the real estate market never rests, the expert responds that it is always advisable to be aware of the opportunities available, as you can find the property that best suits the buyer's needs at any time.

In summer, clients tend to be more flexible in terms of time "so they are more open to making viewings, spending more time looking for a property, comparing options and making informed decisions".

Both supply and demand tend to decline at this time of year. Fernando Tisner, Casavo's Madrid City Manager, believes this could affect property market prices. "During this period, household spending tends to increase due to leisure activities and travel, which can affect people's ability to buy a home at that time". The expert also points out that many real estate agencies, including his, do not close in the summer.

Tisner states that, during this period, many people have more free time, which allows them to spend more time searching for and viewing properties. However, stock availability in popular tourist areas can be affected because sellers, buyers, and even brokers, are on holiday.

Because of this, summer can present availability challenges. "Buyers must be prepared and patient, as it may take longer to find the property you want or to finalise a transaction during this season. Maintaining open and flexible communication with the sellers, buyers and brokers involved can be key to facilitating the home buying process during the summer."

The expert believes that this situation may temporarily limit the housing supply in said areas, which may influence the variety of options for buyers. In addition, Tisner says that during the summer holidays, expenses tend to rise, which can affect the buyer's ability to purchase a home. "Despite these specifics, at Casavo, we believe there are always interesting opportunities for potential home buyers. The Spanish real estate sector is highly dynamic and constantly evolving, leading to regulation of prices and, consequently, the available housing stock".

The best areas to buy a house in summer

Comprarcasa is clear that the coastal areas are the most sought-after in the summer. "Fortunately, Spain is a peninsula surrounded by coastal areas, so the supply can withstand the sharp increase in demand and thus contain prices. In recent years, people have preferred buying single-family homes in less-urbanised areas over cities, especially after the pandemic. However, for urbanites, buying a property in a big city in summer has several advantages, from being able to view properties during many more hours of daylight, less traffic when moving, or being able to carry out all the necessary procedures for property exchange or purchase with much more peace of mind and fewer crowds".

The ideal location for a property depends on individual needs, whether the objective of the purchase is to obtain a return from renting or whether it is for a permanent residence. According to the I Solvia Market View 2023, which collects data for the first quarter of the year, the average house price in Spain was €1,921 €/m2.

At a provincial level, Gipuzkoa, Madrid and the Balearic Islands top the price list once again with price levels above €3,000/m2. Bizkaia and Barcelona – below €2,900/m2 – followed. Other areas above €2,000 €/m2 include Malaga, Santa Cruz de Tenerife, Girona and Las Palmas, all coastal, while Alava is around €2,500/m2.

In the case of rental profitability, this is calculated based on the initial price of the investment and the profits obtained from it. "For the remainder of 2023, we could expect similar returns to those obtained during the previous months, but this figure may vary depending on each region. For example, in the last quarter of 2022, the highest profitability was recorded in Valencia, with rates exceeding 8%, while high-priced locations, such as Madrid, Alava or the Balearic Islands, offer returns closer to 5%, given that the initial outlay that the investor has to make is more substantial", responds Ernesto Ferrer-Bonsoms.

At Casavo, they note that locations where the demand outstrips supply tend to be attractive to buyers, as this can indicate a potential increase in property values over the long term. Meanwhile, cities or areas undergoing investment in infrastructure projects, urban development or area revitalisation may pose interesting opportunities for homebuyers.