After having lived through two especially difficult years, our real estate system looks to the future with optimism in this year 2022 which has just begun. We can say that Spanish housing has shown its strength by withstanding the coronavirus cyclone and thus, currently, experts on real estate are optimistic regarding the future. Why is this? What is expected in 2022? Nearly all analysts coincide on the fact that this year, which has just begun, will maintain an upward trend regarding the number of deals as well as housing prices. If we take a look back at the past, we can come to the conclusion that the year 2021 turned out to be quite positive for our real estate system, in spite of the pandemic. Little by little our system recovered from the paralyzation caused by the health crisis in nearly every sector. Data improved month by month and the number of deals increased as well as the protagonism of new construction after having gone through many months of little relevance. Some weeks ago, we wrote an article in this blog about how our real estate market was boiling, and how housing in Spain had reactivated. It seems logical to think that if the data is good, now that the worst part of the pandemic has passed, then this data will continue to be positive in the future, a fact which is forecast by most analysts.

A REFERENCE FACTOR

In 2022, new construction is expected to carry special weight in our real estate system. The real estate portal Idealista recently published a report showing that in 2022 new construction would gather momentum in several parts of Spain, especially in Madrid, Málaga or Barcelona. Last year, property sales functioned much better than was expected. We must not forget that at the beginning of 2021 the state of alarm was still in force, and we were going through a period of complete uncertainty and thus the forecasts did not have a hopeful note. Currently, operations are settled month after month in our country and hence giving grounds for optimism. At present, it is estimated that 2% of the deals within the total number of our residential market are carried out and therefore nobody throws doubt on the fact that our real estate system is a reference factor in our economy. In the year 2022, the price of housing is expected to rise more than 4%. In relation to new construction this increase will even reach up to 6,5%, and as regards second hand housing the rise could reach 4%. If these forecasts are fulfilled, then the confirmation of this optimism regarding 2022 would be really founded.

HOUSING SALES, MAKING STEADY PROGRESS

During the last twelve months, 611.464 properties were sold in Spain, representing the best figures since 2008. Some consulting firms state that in 2021 there has been an increase of 21%, nonetheless, we must wait for the data results. Once again, it is pointed out that one of our greatest handicaps is the lack of new housing because, currently, its very high demand far exceeds the existing scarce offer of the product. Housing sales continue making steady progress and the facts and figures for 2022 may even improve much more. Likewise, the rental market is expected to continue rising in 2022 and thus covering the needs of those who are unable to or unwilling to purchase a house.

Picture 01: freepik

Picture 02: yanalya