The real estate market in 2022
From Grupo Mar de Casas we welcome a 2022 marked by uncertainty in the real estate market, which will be affected to a greater or lesser extent by the different variants of COVID19 and its direct global consequences. Read on and find out what will happen in this new year.
Real estate market in 2022: property bubble yes?property bubble no?
The pandemic has led the real estate market to levels of tension which, at least in Spain, have been alleviated by the new Housing Law and which, in principle, should lead us to avoid a new real estate bubble and to be able to achieve equal access to housing, both in terms of renting and buying and selling.The Spanish real estate market will benefit from three major milestones: greater access to housing for young people, the increase in sustainable construction and public-private collaboration to promote real estate transactions in 2022. But, let’s now move on to recognise how the housing rental market and the home buying and selling market may behave during these 365 days.
Rental housing: how will the Spanish rental property market perform?
The forecast for 2022 in relation to rental housing is that there will be a drop in prices of between 3% and 4%, increasing the profile of younger tenants (the Spanish government will provide more rental subsidies in the under 35 age range) and a moderation in prices due to the existence of stressed areas (remember that these are those in which more than 35% of the salary is spent on rent).Buying and selling homes in 2022: how will the real estate market for buying and selling homes in Spain behave in 2022?
The pandemic has given rise to a new client in the real estate sector, with new and growing needs that are reflected in spaces with more natural light and more outdoor spaces (terraces, interior patios, terraced houses, villas…) and, together with this, sale and purchase prices are showing small upward fluctuations (between 3-4%), recovering their pre-pandemic strength.At present, with the emergence of the Omicron variant, there is a risk that it will dampen price rises and cause inflation to rise, reducing levels of construction and mortgage lending that are currently showing favourable signs relative to the last two years.
2022, as in the last quarter of 2021, begins with an increase in demand for housing due to savings and with an increase in profitability for all those investors who carry out real estate purchase and sale operations. In addition, the granting of very favourable loans and fixed mortgages offer an optimistic outlook for buyers and sellers (in fact, there has been a rise in variable mortgages, which makes them advisable at this time).
Real estate agents, construction companies and companies related to the real estate market expect that in 2022, with the gradual disappearance of the different variants of COVID19 , they expect a period of stability in the rental and purchase and sale of housing in which there is a gradual increase in GDP and where consumers recover pre-pandemic confidence to be able to afford these operations. They also expect commodity prices and especially energy prices to stabilise, leading to a stabilisation (or even a slight rise) in house prices.
