Finally, some good news for the diminished Spanish Real Estate industry… or at least a promising prediction for a better post-Covid, post-Brexit property market in Spain.
Is the Spanish property market about to turn from buyer dominance to seller dominance?
This news comes courtesy of FotoCasa and Gonzalo Bernardos (economist, analyst and professor at the University of Barcelona). He says, there is real potential for a Spanish real estate boom in 2022 and 2023 and could see some area prices rise and sales increase by 10 to 15% in the next two years. [Source: fotocasa.es]
Since the 2008 Crash, buyers have had the upper hand even with property losing 25/40% of their value. There have and still are some incredible bargains to be had in rural markets. Like this 5 bedroom villa near to Hondón Valley / La Romana for just 179,950€uro. e.g.
Gonzalo forecasts: increases in property transactions and prices and a promising future for those who want to sell homes in good condition. Buyers, on the other hand, will no longer have the privileged position they have enjoyed in the last two years.
The predicted downturn due to Covid-19 was not as bad as predicted, apparently. Gonzalo says the current market is very satisfactory, since the real estate crisis generated by Covid-19 has been much better than expected, with 2020 house purchases down by 14.5%. It was helped by very low interest rates, more banks granting mortgages, and a surprising demand for housing during the pandemic. The banks finally being the ally of the Realtor… in April 2021, financial institutions granted 31% more mortgages than the monthly average for 2019. Plus, the general populace have proved a nation of savers and have more disposable income than in the last 30 years.
Spain is also predicting a growth in GDP… 6% in 2021 and 7% in 2022. If this materialises then financial confidence will return. People will move and improve their lives.
So fingers crossed, Gonzalo is correct with his property market predictions… “Due to all the above reasons, the logical result is the appearance of a new real estate boom in 2022 and 2023. In 2021, the price in the second half of the year will grow more than it fell in the first and, at the end of the year, the rise can be around 3%. The transactions will accompany and rise 15%. In 2022, the price increase will approach 10% and sales around 15%. Undoubtedly, all this constitutes a magnificent situation for professionals in the real estate sector,“
If you want to buy or sell property in the Hondón Valley, please contact Hondon Villas… we have been the first choice real estate agents in the area for 15 years. We are AIPP registered for 7 years and “Business of the Year 2015.