Property market forecasts 2022
The real estate market has changed a lot since the beginning of the pandemic in 2020.
Due to the restrictions and uncertainty, real estate transactions underwent a rather abrupt change.
In 2021 we saw a revival of the sector thanks to the economic recovery, specifically from January to October, when 467,509 purchase and sale transactions were carried out (an increase of 36% compared to 2020).
- Buying and selling
Experts in the sector affirm that right now is the best time to invest in real estate. Firstly, property prices are unlikely to fall and secondly, interest rates remain at minimum levels despite inflation, which will favour financing conditions.
The forecast for 2022 is stable, with increases of 5% or 10% in some of the most sought-after areas such as Barcelona, Madrid and the Balearic Islands.
Regarding the rental market, it experienced a decline of between 4% and 5% due to the pandemic, followed by a slow recovery after the return to normality. For 2022, a gradual economic recovery is expected, together with factors such as inflation, the supply crisis and the new Housing Act. All of the above-mentioned factors, together, can draw a new roadmap for the residential real estate market.
- Where to buy
As previously mentioned in our latest blog, the preferences and tastes of buyers have changed in recent times. Some of the factors are telecommuting, travel restrictions, and the need for larger spaces.
Focusing on the most sought-after cities for 2022, Madrid and Barcelona remain the most desirable. Although there are also other cities that are becoming favourites for those who can telework or do hybrid work. These include Malaga, Valencia, Seville and Alicante.
- The Russia-Ukraine war
Finally, the Spanish real estate market is in a period of uncertainty due to the conflict between Russia and Ukraine. Initial forecasts are not entirely negative for the sector as the impact of the war will be limited, although it will be impossible to avoid collateral damage. However, the real estate sector is on alert due to the increase in rentals as a result of the rise in the CPI and the impact on the luxury sector due to the possible loss of Russian clients.
This is what 2022 is expected to look like for the real estate market. Forecasts for a slow but steady recovery and above all expectation for the changes that the "end of the pandemic" and the conflict in Europe may yet bring.
Julia Oliveras |
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