The consequences of the pandemic caused a correction in the real estate market around the world. The growth of investments in Spain in 2021 amounted to 30% compared to 2020: in July, real estate sales and purchases increased by 53.5%, which is the highest figure in the last 13 years, and in September mortgage loans increased by 57.7%.
Experts of Cassava say that to understand the current situation, it is necessary to understand the evolution of the real estate market in recent years. On the one hand, we see that in 2018 and 2019, rental prices reached record highs and continue to remain significantly higher than purchase prices.
It is obvious that the «COVID effect», along with exceptional mortgage loans, moderate inflation and keeping the CPI at a relatively stable level, contributed to growth in the real estate sector. Cassava believes that if inflation does not get out of control, the European Central Bank will maintain favorable financing conditions.
Despite numerous mentions of a new «real estate boom», the company's analysis concludes that since prices are rising steadily without being accompanied by a credit bubble, the risk of these assets is very low. In addition, unlike in 2007, homeowners are choosing fixed-rate mortgages that guarantee greater stability of payments.
Experts also explain that the arrival of the pandemic has changed the way of life and, consequently, the type of housing that we need, this is another of the factors that contributed to a very high growth in the number of transactions in the real estate market. Therefore, the technology is positioned as a key link that meets the new needs of both buyers and sellers.
According to the latest Cassava report, 86% of Spaniards living in Madrid and Barcelona and in the process of selling real estate in 2021, said they used the services of real estate operators. Despite the fact that the sale is carried out independently or through the intermediary of a real estate operator, it is obvious to use digital channels to advertise real estate, with 81% of operators choosing Internet platforms and websites, this solution is also chosen by 77% of sellers who have decided to manage the sale by themselves.