Evolution of the Spanish real estate market in 2022

The Spanish buy-to-let market in 2022

If we pay attention to the buying and selling market, we can see that house prices have been rising for the last two years in response to high demand, and this year has been no exceptionand this year has been no exception. However, it is expected to reach a peak in the near future and, from then on, it is expected to remain at stable levels.

Tinsa the real estate data valuation platform, pointed out that, during the third quarter of 2022, house prices grew by 8.5% year-on-year. This shows that the demand is still active.

The rate hike announced by the ECB over the summer has had an unexpected effect, and that is that, despite making mortgage repayments more expensive, many have seen that the perfect time to buy is now. In fact, according to data provided by the National Institute of Statisticsin October, in October 51.615 home sales and purchaseswhich represents a year-on-year increase of 11.4%.

According to the historical data provided by this institution, so far this year there have been a total of 551.643 transactionsconsolidating what has been called "the golden real estate year"the golden real estate year". In terms of sales and purchases, it is the best year since 2007, even though all the data has not yet been collected.

Evolution of the rental market in Spain in 2022

In the rental market, there is a great imbalance between supply and demand, as the number of people looking to rent is greater than the number of properties available. This causes the prices of rental properties to rise. This can be seen in the main cities and provincial capitals of our country, such as Madrid, Barcelona and San Sebastian.

This rise was especially evident in the last half of 2022 especially evident in the last half of 2022 after the ECB announced the rate hike.

In comparison, the rental market is gaining ground over the sale and purchase market, so we are at an excellent time for those who want to invest in the housing sector to invest in the housing sector.

What has happened in the real estate sector in the rest of the world?

The real estate sector is highly sensitive to socio-economic changes, so in all countries, inflation, the aftermath of the coronavirus and the conflict between Russia and Ukraine have had an impact to a greater or lesser extent.

On The United States, where the Federal Reserve announced a hike in the US dollar where the Federal Reserve announced an interest rate hike well before the ECB did, the housing market experienced a decline in prices for the first time in the last decade. This prompted many consumers to invest in housing.

China's housing market, it appears that they may be close to experiencing a real estate crisis, as the lack of liquidity in the country has caused construction projects to come to a standstill. However, homebuyers are no longer so focused on new construction and are turning their attention to the second-hand market, where they do see an increase.

In the case of some European countries such as Germany or The Netherlands the situation is slightly different, as both countries are the largest economies in the Eurozone in terms of financing. This is why house sales have not stopped growing in Germany, despite the fact that house prices have also been rising.