2020, will be a year of moderation regarding the housing market as it will grow even less than in 2019. This is the conclusion that most real estate experts have reached. They all agree on the fact 2020 will be a year of restraint in property purchase and sales. It seems that the good path that Spanish real estate followed in 2019, will continue in 2020, but in a more moderate way than in previous years. From 2013 onwards, the Spanish real estate market has not stopped growing. It is estimated that since then, real estate deals in Spain have increased more than 35%, a fact which reveals the recovery of the sector. In 2019, facts and figures have once more been positive regarding Spanish housing, regardless of the fact that in the last term the number of deals dropped. Therefore, it is expected that in 2020 moderation will prevail with a slowing down in the number of deals and a very slight price increase. In any case, we must take into account that Spain continues to grow above European average. This speaks for itself regarding the healthy functioning of our real estate market. 

DIFFERENT BEHAVIOUR AND SPEED

All experts agree that the market will have different behaviour and speed depending on each city. A fact with great symptomatic significance is if we compare Madrid to Barcelona, our two main cities: in Barcelona, the real estate market has contracted due to the tenseness of the political situation and this has caused a price attenuation. All in all, it is estimated that property purchase and sales will drop in 2020. Tinsa opts for only a 3% increase. On the other hand, great changes are not expected in housing prices unless an unforeseen political scenario arises which can have an adverse impact on our real estate system. With regard to renting, the upward trend in prices during 2019 may continue in 2020 unless institutions seek to remedy this situation of supply shortage. In this respect, it is necessary to advance policies which will increase rental offers and thus restrain price rises. Some experts suggest that tax benefits should be offered in order to help citizens gain access to rental housing.

2020: A YEAR OF SUSTAINABILITY

2020 should be an important year regarding sustainability and housing. This is due to the fact that by the end of 2020, every new building in the European Union must have nearly zero energy consumption. This is why the real estate sector must be oriented towards sustainability, as is happening at present. It is also very important for national administrations to encourage, with their policies, the growth of this kind of business, not only regarding new construction but also the restoration of existing properties.

Picture 02: Carlos Rivera