Spain’s residential real estate market has acted as a safe haven, although the trend may slow down before the end of the year. Considering the current volatility and uncertainty in the financial markets, the housing market in Spain has strengthened its position as one of the top investments.
Research by the real estate investment technology platform Inviertis found that domestic and international real estate investors had increased by 10%. This is due to inflation and the conflict in Ukraine. According to Inviertis, this is the Spanish real estate outlook for the remaining portion of the year in 2022.
The company claims that property purchase, sale, and rental activities in Spain will continue to rise steadily. This rise isa result of accelerated operations due to inflation and the rise in interest rates, notwithstanding the current economic situation in Spain and throughout Europe.
According to a document published by Inviertis, investors can take advantage of the markets’ instability, and gain consistent profit. The market is not anticipated to improve soon. In fact, in terms of both investment volume and transaction volume, residential real estate will be the market segment that earns the most interest.
This is also true for ex-pats who intend to go overseas and who believe that purchasing real estate in Spain now will be profitable in 2022.
The lack of other investment possibilities in the stock or energy markets, has shown that they are currently many investors with liquidity in the market who are eager to spend their wealth by purchasing real estate assets. Therefore, all signs show that demand for real estate in Spain will remain high.
The market will hold steady if interest rates and inflation both rise and there is still liquidity. However, if one of these factors changes, then a decline in demand will have an impact on prices but not investor interest according to Inviertis professionals. The current prediction, according to Inviertis, is that demand will increase till the end of the year.
Inviertis anticipates a halt in home sales and purchases as well as a slowing of price growth, in line with predictions made by other organizations such as AFI or Bankinter. It does, however, rule out the likelihood of a fall as severe as the one experienced during the 2008 financial crisis.