The real estate market has undergone significant changes over the past few years. Economic shocks, factors and trends in the market, crisis trends in the global economy and international instability played a role. Among the key factors of changes in the real estate market are the individual needs of buyers and tenants. They have also undergone changes over the years. An important place is also occupied by prices, which have been growing, perhaps too actively in recent months.
Armando Lasauka, CEO of aProperties agency, points out that today it is extremely important to set the price in accordance with the market situation in each specific area of the country, in each specific province and city, taking into account the characteristics of the property, its location, the need for repairs and energy efficiency. It is necessary to take into account seasonal changes and the adaptability of each specific property to them.
Xavier Aranega, partner at Revel, points out that despite the pronounced crisis trends in the economy, market participants should not expect a repeat of the situation in 2008. Moreover, many have learned enough lessons from the situation then. In particular, according to Aranega, an understanding has come of the importance of every detail of real estate, no matter how insignificant it may be. In order to sell housing faster and at the best price, it is necessary to take care of the image of the object, provide good professional service, and be flexible in setting prices.
In any case, it is necessary to keep abreast of the development of the economy and the real estate market. Many prospects for the Spanish economy are shrouded in fog, but it is already obvious today that the period of rapid post-pandemic growth is ending and a significant cooling should be expected in 2023. Anna Puigdevall, treasurer of FIABCI Spain and CEO of the National Association of Real Estate Agents (ANAI), reports that economic growth next year will be low due to many macroeconomic factors. And although the real estate market will retain its strength, general trends will not bypass it either. At the moment, the strength of the market is given by a huge consumer demand and a scarce supply.
Is it time to sell?
Realizing not the most optimistic prospects for global real estate markets, including the Spanish market, the question arises — is it worth selling your assets in this market? Revel claims that today is a good time to sell housing, both with the expectation of an early purchase of a new one, and with the expectation of a long wait for more favorable conditions. Over the next year, the situation will become much less attractive for sellers, as due to inflation and rising interest rates, the number of potential buyers will noticeably decrease.
Anna Puigdeval emphasizes that now the moment has been created when the market is at its limit. It is at its peak and there is a short time left before the inevitable slowdown in growth dynamics and its decline. The situation is also favorable for buyers so far, since interest rates on lending have not yet reached the psychological ceiling and have not become objectively unprofitable for opening mortgage loans.
Armando Lasauka believes that housing, nevertheless, remains a fairly safe asset for investment, despite the obvious uncertainty of the market. The uncertainty created, among other things, by the international crisis caused by the conflict between Russia and Ukraine. According to the National Institute of Statistics (INE) of Spain, due to the prevailing factors, in the second quarter of 2022, residential real estate prices in Spain increased by 8% year-on-year, which was an unprecedented increase over the past 15 years. The market has demonstrated high performance throughout 2022.