The real estate market is strengthening its recovery after the effects of the pandemic. According to National Institute of Statistics (INE), in September of this year, 53,410 purchase and sale transactions were registered, which is the highest figure since April 2008. In the first nine months of the year, these transactions are 8.5% higher than in 2019.
High demand for housing, combined with a limited supply of new construction due to the freezing of the construction sector during the pandemic, led to an increase in real estate prices by 6.1% in the third quarter of this year compared to the same period in 2020, to EUR 1,444 per square meter, according to the valuation company Tinsa. The experts believe that during 2022 these indicators will continue to grow, although it will still be far from the prices of 2007.
Faced with the situation of rising prices, many of those who are considering buying a property are wondering if now is the right time to buy a home? Carlos Bolado, a professor at UBS Business School, believes that the current situation is favorable, since real estate will become more expensive in the coming months.
The price of real estate is steadily rising
According to analysts, real estate prices will increase by about 6% compared to 2021.
Christina Arias, CEO of the Tinsa Research Department, notes that the price increase is mainly due to the lack of new construction. «The rapid resumption of demand is being met by a limited supply of new housing. It is a combination that pushes prices up», she explains. The expert adds that this situation will continue for some time, since the construction of apartments can take from 18 to 24 months. The term may even increase due to the current situation when there is a shortage of raw materials.