One of the pillars of the recovery of the Spanish economy after the active phase of COVID-19 was investment in the national real estate market. Spain and Germany have become the only member countries of the European Union that have more than one real estate market in a dozen key EU markets.
For Spain, the basis of growth is the capital Madrid and Barcelona, which took the fifth and sixth places in the ranking, respectively. In general, according to the consulting company Catella, investments in real estate in Spain last year reached a record 17.5 billion euros.
However, there are risks that the attractiveness of Spain for investment may change in the coming years. Despite this, the local market still offers high returns for large investors, consultants and analysts believe that the current quarter will be extremely important for determining the future development of Spanish real estate.
Investors and representatives of real estate businesses are increasingly pointing out that the Spanish market may show both the largest growth in the EU and a major drop in the near future. The uncertainty is high.
According to Oscar Larrea, director of Everest, Spanish real estate is in the stage of extremely active development, the possibilities of digitalization only spur the ongoing processes and create attractive offers. The interest of investors can be seen on the example of the same Madrid, where by March 2023 about 1,600 applications for a license for the construction of new housing were submitted. In Spain as a whole, the figure exceeds 14,360 applications.
On the other hand, there are enough reasons that you will have to pay for the current excessively active growth later, perhaps as early as the end of 2023. However, after the most pessimistic forecasts for the beginning of this year did not come true, the negative forecasts for the end of the year became, for the most part, softer and more cautious.