A new year begins and with it a new financial year in which the real estate market continues to be the main protagonist. In this first edition of the Real Estate Corner 2022 we analyze the current situation that one of the main sources of investment is going through, such as real estate, and for this we have the intervention of great experts with extensive experience in the sector.
Through all of them we know the hottest topics today in the real estate world such as evolution of demand and prices, as well as new trends that we are beginning to observe in the market and the challenges that await you in 2022.
If we take into account the evolution of housing prices in recent times, one would think that the trend will continue to be upward for this financial year, however, Luis Martín Guirado, corporate director of business development at GESVALT refutes this theory, “I think that housing prices will not continue to rise as they have risen up to now” and adds, “when one speaks of raising housing prices it is quite complex to give a single answer because the housing market Residential housing differs a lot from the autonomous community where you live, the population within that community or even neighbourhoods”. What Martín Guirado expects for this 2022 is a moderate rise of between 0 and 1%.
Conversely, Eloy Bohúa, CEO of SIMA and Grupo Planner, delves into consumer sentiment, an aspect also closely linked to the price of housing, “the purchase process is increasingly perceived as less uncomfortable”. However, as Bohúa explains, in the process of buying a home there is still a lot of tension since the user wants it to fit the price and financing they want.
Regarding the increases in real estate, Eloy Bohúa adds that “there is still a difference between supply and demand due to the rise in prices” and in this difference the high costs of materials and labor intervene, which are aggravated because of high inflation. For all these reasons, the general director of SIMA affirms that housing prices will continue to rise.
In addition, Enrique Martín Barragán, professor of the specialized program of Real Estate of the IEB, focuses on the impact that the Covid pandemic has had on the general economy and on the real estate sector in particular, “it is a very difficult sector to read due to the Covid effect”. But he does not lose hope of a quick improvement, “it is true that there has been a recovery and there is still a way to go with respect to the historical maximums, but they cannot be seen as if it were a goal to beat but almost as a sign of danger” .
“The vision we have is of a very moderate growth of around 2% that could even be softened from 2022”, adds Martín Barragán and explains what are the factors that exert this upward pressure such as the problem of costs in new construction