The property market is going through a period of change. Consequences to Russia’s invasion of Ukraine are now adding onto the coronavirus pandemic’s first blow, among which inflation stands out. Despite all of this, forecasts are positive and the College of Property Agents (Agentes de la Propiedad Inmobiliaria, API) assures stability will remain, as well as its value as safe-haven investments, although powerful changes will come about due to new trends in the different subsectors that make property up.
The current condition of the property market and international economy, as well as new trends on the company level, were the main themes that Vicenç Hernández Reche, Tecnotramit’s CEO and chairman for both the National Association of Property Agents (Asociación Nacional de Agentes Inmobiliarios, ANAI) and the Catalan Association of Property Agents (Asociación de Agentes Inmobiliarios de Catalunya, AIC), addressed this week during his talk in the VI International Real Estate Professionals Congress (Congreso Internacional de Profesionales Inmobiliarios, COIPRI) held in Lima, Peru.
In this respect, the expert indicates: ‘There has been a widespread slowing down in investor sentiment within the global property market.’ The gap between supply and demand in the trading market is ever growing, therefore causing restraint on the intensity of published offers.
‘Despite headwind in the past months, property shows signs of stability since it relies on alternative markets that do not offer comparable profitability. In turn, a natural propensity exists by establishing property as safe-haven assets,’ explained Hernández Reche.
A global and asymmetric economic crisis
Regarding the economic area, the chairman for both the Catalan Association of Property Agents and the National Association of Property Agents warns of the existence of an asymmetric crisis in which restrictions on supply and demand contribute to a high and widespread inflation that does not favour anyone or anything except for central banks’ aggressive replies.
‘Economists cannot predict the future as the economic world is highly complex and the future is less and less linear, with the existence of unpredictable “black swan events” and constant, precautionary reactions from people to the forecasts themselves,’ says the expert.