The situation in the Spanish real estate market offers many opportunities for both expatriates and investors. The pandemic, combined with the turbulent macroeconomic and political climate, has increased the level of uncertainty. Despite this, the demand for housing has skyrocketed, while the supply has remained the same stable.
In the first 3 months of 2022, prices for secondary real estate in Spain have risen. The size of the quarterly growth was 0.3%, and the size of the annual growth was 0.8%. As a result, investors' interest has grown by 400% since last November. Taking into account the potential impact of inflation and the military conflict in Ukraine on other segments, such as the stock market, it seems that real estate has become a reliable asset under conditions of uncertainty.
Rebecca Perez, CEO and founder of Inviertis, explains that "investors withdraw everything they had on the stock market and invest in real estate to preserve their fortune." This situation was aggravated by the Russian military operation in Ukraine. Such investment is now a guarantee of security, as real estate market fluctuations have become more controlled, and demand and supply in Spain are stable.
This trend has affected not only large investors, companies and service organizations, but also private investors, who account for about 80% of all real estate purchases on the market.
Cryptocurrency plays an important role in the real estate market
Real estate attracts the attention of small investors who realize that their money is losing value in banks but do not dare to work in the cryptocurrency market. However, the use of digital payments in this area is gradually increasing. As Rebecca Perez notes, the main advantage of buying a home using cryptocurrency "is that you turn a risky investment into a conservative one, and if you were lucky enough to enter the world of cryptocurrencies, for example, in 2012, you can buy a house for 200 euros." She added that "the shortcomings are administrative, for example, how to set the price of bitcoin, how to properly inform a notary or how to deal with the tax authorities."