Covid-19 has taken a huge tall to the global economy, painting a grim picture in sectors such as hospitality, commerce and tourism. The economic blow in 2020 will give way to a period of prosperity and growth in 2021 and 2022 in the Spanish economy with an expected GDP growth of more than 6%.
Several points characterize the current economic situation:
- Strong growth after a period of intense decline in GDP.
- Funding at historic lows.
- Price inflation.
What are the prospects for the real estate sector in this context? Experts' forecasts are very promising: this sector will lead the recovery of the Spanish economy. Investments in real estate properties (be it real estate, land or commercial land) are traditionally the best option to guarantee against inflation effects.
Prices have been adjusted
We are at the beginning of an intensive recovery in the Spanish economy. The European Commission and the Bank of Spain said the economic boom will be more intense than initially expected, with production growth of more than 6% this and next years. In 2021, most of this growth will come in the second half of the year as vaccinations continue to progress.
In 2020, house prices were corrected after the upward movement that began in 2013, and very interesting investment opportunities have emerged. In 2021 and 2022, house prices in Spain are projected to rise by more than 4% in the midst of an economic recovery, according to industry forecasts. Therefore, we are still faced with a low price level in the real estate sector, in contrast to what is happening in other markets such as the United States, where prices have already started to rise sharply, driven by high inflation.