Real estate industry expects that in the coming months, prices for new housing to rise, and prices for second homes to fall

Real estate industry expects that in the coming months, prices for new housing to rise, and prices for second homes to fall

The heads of the real estate department taking part in the main conference "Real estate as the driving force of the Spanish economy", organized by El Economista, expect that in the coming months prices for new homes will rise. This growth will slow down in 2021, but will grow again in 2022. Secondary housing prices have a different fate, as they continue to adjust after the pandemic.

"Prices for new construction are growing moderately and may increase in 2022. It's time to buy, " said Borja García Egotzaga, CEO of Neinor Homes. "Developers will have no choice but to increase the cost of their projects," Basque entrepreneurs warn.

Aedas Homes estimates that a 4% increase in construction costs will lead to a 1% increase in house prices. Javier Sánchez, the company's director of innovation and branding, believes that the sector is in a period of post-pandemic expansion, which will last several years and is characterized by such a factor as the influx of funding from companies.

The Bank of Spain predicts that GDP will grow by 5.8% next year. In addition, there is an age pyramid that will create a million new families in the next decade, while household demand and savings are increasing. The fact that the interest rate is the lowest is likely to cause inflation for consumers.

For his part, the president of Via Agorà, Juan Antonio Gómez Pintado, also predicted that prices for new houses will rise: "It's definitely time to buy. The trend is on the rise this year and next year." Similarly, Tinsa's commercial director, Pedrosoria, is very attentive to the difference between new houses and secondary houses.

"There will be a positive trend by the end of the year, but new buildings and secondary ones should be completely separated. The first ones are growing in areas with strong dynamics and high demand, reaching about 1%, the second ones are growing moderately, and some areas have already reached a 5% correction."

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