The Spanish housing market has proven to be strong and gives good expectations for 2022.
Nonetheless, 2020 saw a huge spike in volatility due to Covid, but at the same time Central bank poured money to support economies.
In 2022, a higher volatility is probable in financial markets due to the change of policy from central banks all over the world. This could help the real estate market, but it still depends on the economic impacts in the next years due to Corona.
But The bank of Spain predicts a return of 7% for the Spanish real estate market and many real estate investors consider the housing market in a constant growth.
Timing is everything with most investments. All asset classes, including property, are cyclical in nature. Peaks and troughs are characteristics of all asset classes.
However, timing is only imperative if you need to buy and sell your property within a time frame to achieve your investment objectives.
The great news about Spanish property prices is that despite the economic slump from the global pandemic, house prices in Spain have been steadily rising, bucking the trend.
So, if you are thinking to start an investment, the premises are very good for the value of your future estate to grow.
Spanish house prices rose 1.68% during Q3 2020 (2.2% inflation-adjusted). In the previous year, property prices in Spain in 2019 posted a 4.68% rise, according to the Instituto Nacional de Estadistica. On a quarterly basis, house prices increased 1.15% in Q3 2020 (1.67% inflation-adjusted).
According to Caixa Bank: The gap between the most expensive and cheapest provinces and cities is widening. In 2019, buying a home in Barcelona or the Spanish capital will cost more than double the national average, while in 2014 it was «only» 1.6 times more.
While, in the Canary Islands, there were 24,535 transactions for residential properties during 2021, which is 44% more than the previous year.
Here, the price per Square Meter to buy an apartment in the city centre is 4,000.00 euros and about 1,360 euros outside the center.
Are you ready to take advantage of the Spanish house market? Check out this page for more information.
André Pitì
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