The end of the year is getting closer and closer. The year 2021 was marked by a general recovery process, increased mobility between countries, increased sales and purchases of real estate, the arrival of international investors and a steady decline in rental prices. What will 2022 be like?
One thing is clear: the economy and the real estate sector still depend on the general state of the economy. It is also important how the pandemic will behave in the country and the world.
DBK INFORMA reports that the real estate market has favorable prospects in the conditions of an improving economic situation, low interest rates and an increase in the level of savings, which allows us to expect a recovery in demand and prices in general in the two-year period 2021-2022.
Sale and purchase prices: rising or falling?
A few months ago, real estate experts agreed that if the trend of sales and purchases growth continues, a slight increase in property prices is possible.
According to Jose Manuel Fernandez, Deputy CEO of UCI, reports that «we see the prospect of absolute price stability in recent months, and real estate agents who really have their finger on the pulse of the market believe that by the end of this year and at the beginning of 2022, this stability or a small increase (no more than 10%) will be the main trend».
Rental prices
According to analytical information, rental prices have been falling in recent months. Will it continue to fall? Tony Esposito, CEO of Comprarcasa, believes that lower interest rates make this one of the best times to apply for a mortgage loan.
«Therefore, we can say that the trend is more focused on buying and selling. It affects the reduction of rental prices. Although, we should clarify that this is not a sharp decline and the interest in renting still remains relevant in the real estate market».
According to Jose Manuel Fernandez, the growth in rental demand depends on potential prospects regarding working methods. «If now, when the health situation is improving due to the pandemic, there will be a 100% return to the office».
For instance, if last year and at the beginning of this year there was an increase in prices in areas bordering major cities in Spain, such as Sierra de Madrid, which was due to high demand, now it may decrease if the availability of work becomes the norm again. It will also lead to a possible increase in prices in the main urban centers of the country.