In 2022 the real estate market in Spain maintains the dynamics of the previous year. 2021 ended with record sales in a decade. But in 2022 the growth will be slightly lower than in 2021, around 4.5%. Prices will increase by 4%.
This is stated in the report of the Servihabitat real estate portal.
The latest study of the real estate market in Spain by Servihabitat Trends, the company's research platform, showed that the volume of new housing exceeded 100,000 units last year. The same level is expected in 2022.
The company expects strong market performance not only due to strong local demand, but also due to the return of foreign investors. The pandemic brought the decrease in foreign investments.
The return of foreign buyers was noticeable in 2021. 664,900 homes were sold in 2021, which was 28% more than in 2020.
Despite a record year, the total number of sold housing units on the market is still far from 2007's results. Iheb Nafaa, the CEO of Servihabitat, points this fact out and states that “there are no reasons to debate about thawing in the real estate sector”.
Housing prices increased by 2.9% in 2021. They are expected to increase by another 4% in the current year. At the same time, prices for new builds will grow more than prices for property in the secondary market - 4.5% and 3.9% accordingly.
One of the key trends among buyers to purchase houses with larger areas remains the same in the market. Another trend is the decrease in the number of tenants.
At the moment 19% of the Spanish live in rented housing - this is the two-years-old level. This is connected with the lack of opportunities to live on their own for many young people. The reasons are: the consequences of the pandemic and remote work.
The report expects that pre-COVID-19 rental levels will be restored in 2022. Rental rates are around 9.7 euros per square meter on average at the end of 2021.
The report also shows a construction boom in Extremadura and Murcia, on the east and northeast coasts of the country. These regions are followed by Catalonia, Madrid and Andalusia autonomous communities.