To buy a property abroad, you need to consider a lot of factors. The source https://spain-real.estate/ will tell you what a buyer of Spanish real estate needs to know in 2022 not to miscalculate.
What factors do you need to consider before buying a home?
After the coronavirus pandemic in 2020, Spain’s economy regained momentum in 2021. One of the main reasons for this was the good dynamics of the housing sector, which returned to pre-pandemic indicators in property rental and sales. In this case, many people have started planning to buy a home in 2022. Knowing where to invest and what steps to take in advance will save you from a lot of problems.
There are four main factors that a home buyer in Spain should consider:
- Determination of the buyer’s objectives;
- Preferred property type;
- Financial opportunities.
Which cities in Spain are the most attractive for investment?
If you are planning to buy a property for rent, you should consider places with high rental prices, because real estate profitability is higher there. These places include:
- Province of Alava, Biscay;
- Balearic Islands;
In these regions, the central districts have the highest rental rates. However, the cost of buying a home in these locations is also high, so the initial cost of housing will be higher.
Key factors of buying a property in Spain
When planning an investment, you must calculate the real property value, that is, the price that the market is ready to offer for real estate in the current period. To find out the real cost, you can use the services of an expert in this field, or conduct an independent market research.
To understand whether the investment will pay off, you have to find out whether the price of land will change in the coming years. In this matter, you should consider the uncertainty factor, as it is unlikely that all forecasts will always come true or that other circumstances that have not been taken into account will not take effect.
Real estate in Spain in 2022: forecasts and prospects
Leading Spanish experts and economists, the largest real estate portals and banks in Spain predict an increase in prices on the real estate market in 2022. So far, nothing portends price stagnation, nor a decline in housing prices either in the primary or secondary markets.
According to experts, in 2022, we should expect an increase in real estate prices in major Spanish cities and popular resorts by an average of 2-6%. Moreover, this trend is expected to continue until the end of 2023. First of all, real estate in Spain in 2022 will rise in price in Madrid, Barcelona, Malaga, Bilbao, Seville, Valencia and Alicante, as well as the Balearic and Canary Islands.
If we compare the prices per square meter of housing in January 2022 compared to January 2021, the following autonomies will enter the top five: Balearic (7.9%), Andalusia (6.4%), Canary Islands (5.6%), Valencian Community (4.8%) and Madrid (3.5%). In Spain as a whole, the price increase was 2.1%.
New real estate from developers will become more expensive due to the constant increase in prices for energy, electricity, building materials, etc. Some experts say that 10% by the beginning of next year is not the limit. The increase in the quality of construction, the introduction of new technologies, and standards also affects prices. And, of course, one of the most important factors of growth is inflation. According to the National Institute of Statistics of Spain, 2021 closed with an unprecedented increase in the consumer price index (IPC) – 6.5% year-on-year, breaking a 29-year record.
Real estate in Spain in 2022: increasing demand for purchase a property and mortgage
The increase in real estate prices in Spain in 2022 will be accompanied by an increase in demand for housing and mortgage loans. Low fixed interest rates and negative Euribor, which affects floating rates, stimulate the purchase of housing on credit. The National Institute of Statistics noted that over the last six months, the demand for mortgage loans with a fixed interest rate increased by 60%. Buyers are in a hurry to take advantage of the unique opportunity to receive financing on the most favorable terms and provide themselves with stability guarantees and fixed quotas for the next 15-30 years.
The largest housing portals in Spain note that the price of new housing is rising faster than secondary real estate. Buyers are attracted by modern layouts, well-equipped kitchens, well-designed areas of common use condominiums, etc. This trend will continue in 2022-2023.
Profitable real estate in Spain at Spain-Real.Estate
Are you looking for real estate for sale in Catalonia for accommodation or investment? Spain-Real.Estate managers will provide you with comprehensive support at all stages: from search to after-sales service. On the website, you can always get detailed advice on everything you are interested in from leading experts with many years of experience working with Spanish properties.