By Cristina Balaguer - Directora general de Activum
Source: El Economista
Even with more demanding economic conditions, foreign investment will not decrease in the coming years due to the competitiveness of Spain with respect to its countries of origin in variables such as; interest rates, profitability and price range.
In addition, there is still a high demand and need for new construction housing and the reality is that the production of housing continues to be lower. In this context, the price of housing in the third quarter of 2022 has not fallen and has grown at a good pace, mainly in the cities of Madrid, Barcelona, Malaga, Valencia and Alicante.
Just one year ago, in December 2021, we defended that real estate sales did not "done themselves" although it might seem so in the current scenario. After this turbulent year, it has been shown that real estate sales are and will be made if there is a careful design of the project and if it is known in detail who the client is and what they are looking for in each area.
The increase in the Euribor, the index on which variable-rate mortgages are calculated, which already exceeds 3%, together with inflation and its direct impact on family savings, means an added difficulty in buying a new home. However, appreciating a temporary adjustment, we still do not see a significant change in pattern, and possibly because the labor market is not being affected at the moment.
The slowdown that will be reflected in the first half of 2023 will not be intense or lasting, today we have a more solid, healthy real estate sector and with new models that help to face the current situation of society.
Los precios se mantendrán estables en 2023 y subirán de modo razonable desde 2024, en línea con la inflación.
As of 2024, the supply of new-build housing will gain weight because in 2022 it is falling slightly due to non-recurring aspects, but in previous years it rose and that trend will return.
What is certain is that our sector, like the macroeconomy, is subject to cycles and now we are facing a change of cycle and refusing to accept it may be a strategic error. It is time to make decisions and focus on those business segments that a situation like the current one can benefit the most. Attitude, authenticity, initiative, flexibility and creativity will be key in Activum for this new stage.
The future in the real estate sector continues to glimpse more sustainable, industrialized and with new formulas to facilitate access to housing. Therefore, one of the keys of our time is to promote housing that respects the environment. When buying a new construction home, one of the reasons for decision in recent months are the sustainability criteria.
Industrialized housing is being proposed as a solution to the challenges of construction, to achieve greater efficiency and reduced deadlines.
In short, the real estate sector faces 2023 with challenges in the short term and major transformations in the models of access to housing.
A year ago the prospects for the real estate sector pointed to recovery and growth, however, today it faces a more complex, albeit optimistic, scenario.
The sector has the clear mission of contributing to the country's economy and Spain continues to be an attractive market for investors who, without slowing down, raise the investment volume figure by 10% in 2022 according to industry sources.
The rental housing market in Spain continues to attract the interest of international investors, and this has been reflected in the operations that have been achieved in this year 2022. They are currently captivated by new business models in housing, such as that of the Colivings Build To Rent or the mo, appreciating the opportunity of investing in our country due to the lack of offer and low prices compared to the rest of the countries of the European Union.
The residential continues to be the segment.
The slowdown that will be reflected in the first half of 2023 will not be intense or lasting
Source: ECP 05-01-23 Diario Economista all rights reserved - Distributed by MyNews