Why are house prices not falling?

In 2022 the price of housing is not likely to fall. The sale and purchase of property in Spain, especially in large cities, is experiencing a golden age. The two driving forces behind this increase are the economic recovery after the pandemic and the record savings of families. At 11Onze we give you the keys to analyse the real estate sector.

 

Although experts are still debating whether a new real estate bubble is in the making, the truth is that there is a consensus that housing prices will continue to rise in 2022. Thus, the Spanish Association of Value Analysis points to an increase of up to 5% in new properties and 6% in second-hand homes. And Idealista has calculated that sales and purchases in Spain are likely to remain above 550,000 units.

The number of property sales and purchases is spectacular, especially if we consider that more flats have been sold in Spain since the summer of last year than at the height of the property boom in 2008. If we analyse the figures in more detail, we draw the same conclusion. According to Idealista, the residential sector in the city of Barcelona closed 2021 with an investment of 627 million euros. This implies an increase of 124% compared to 2020 and 116% compared to 2019. 

 

The reasons for the increase in price

According to analysts, there are several factors that must be taken into account to understand why housing prices are rising unabated. In terms of buyer sentiment, on the one hand, there is the reactivation of consumption after the slowdown, which has caused the demand that until now had been stagnant to suddenly awaken. On the other hand, there is a record level of household savings.

Moreover, in a context of high inflation, which has reached 6.7% at the end of 2021, families are looking for a return on their money in fixed assets, which are currently a safe haven investment. And this also encourages young people to look for their first home, especially in the periphery. In addition, of course, good financing conditions and the fear that prices will rise even more, two facts that have led to an acceleration of purchases.

At the same time, experts also point out that, as far as property builders are concerned, new developments have suffered from the blockage of supplies and the rise in the price of raw materials, and this may have pushed up prices in some cases. What is clear is that, if you are thinking of buying a home, in 2022 everything points to prices remaining the same or even rising.

 

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

If you liked this article, we recommend you read:

Economy

Buy a home in 2022

3 min read

This 2022 comes with fiscal changes in the purchase of real estate.

Economy

Solving young people’s dilemma

6 min read

Only 15.8% of the young population is emancipated, the

Community

Accept and not accept when renting a house

4 min read

In the real estate market, and specifically in the rental market



Equip Editorial Equip Editorial
  1. alicia Coiduras Charlesalicia Coiduras Charles says:
    alicia

    Gràcies per aquest informació

    • Jordi CollJordi Coll says:
      Jordi

      No es mereixen, Alícia, moltes gràcies a tu per formar part de la nostra comunitat i per ser-hi. Agrair-te, també, el teu comentari!!!

      5 months ago
  2. Manuel Bullich BuenoManuel Bullich Bueno says:
    Manel

    Bon article👍

  3. Jesus Manuel Nuňez TizadoJesus Manuel Nuňez Tizado says:
    Jesus Manuel

    Molt ben explicat 👏👏

  4. J.Carles PlanasJ.Carles Planas says:
    Josep Carles

    Molt ben dit.

    • Jordi CollJordi Coll says:
      Jordi

      Celebrem que ho hagis trobat encertat… Moltes gràcies pel teu comentari, J. Carles!!!

      8 months ago
  5. Pere SorianoPere Soriano says:
    Pere

    Bona explicació.

  6. Ricard Calvo VilanovaRicard Calvo Vilanova says:

Leave a Reply

App Store Google Play