Given the still uncertain macroeconomic context due to the pandemic, the property industry has a positive outlook, specially in the residential, logistic, and hospitality sectors -which have a great desire for investment. This suggests a scenario full of activity and dynamism by the end of 2022. The forecast for the upcoming year is for inflation to relax, meaning property is a haven where savings from the previous year can be poured into. However, why is there still a problem accessing this market? How has capping rental prices affected the sector? The updated Housing Law forces a percentage to be social housing. What effects has this law had?
These issues have been analysed by Vicenç Hernández Reche, Tecnotramit’s CEO and chairman for 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). He did so at the IV National Conference On Property Servicing (CMS), which took place at Madrid’s Goya Theatre and gathered over 1,000 property, legal, and financial industry professionals. The following also participated at the same round table: Alejandro Sancho, Zittus Management’s CEO; Juan Pablo Vera Martín, Testa Home’s CEO; Mayca Llorens, Solvia’s Rental Department Manager; and Rosa María Gallego, Q Living’s Operations Manager.
The property sector is at the epicentre of the economic debate, specially due to the policy impact derived from the new Housing Law that limits rental price increases less than inflation. The industry, however, faces this uncertainty with great dynamism as there was a sharp rise in prices during the first quarter in relation to 2021, but no signs of a housing bubble yet.
Buying or renting: there is no debate in Spain
Although there is a percentage of home ownership of 75.1% in Spain in comparison to Europe’s average of 69.7%, the Spanish College of Property Agents (Agentes de la Propiedad Inmobiliaria, API) dismisses a slight change in trend. They claim it will be complicated to achieve Germany’s 50% and warn authorities help for supply and demand with balanced intercessions should be granted in order to fulfil social objectives. As was revealed by Vicenç Hernández Reche. The expert identified the main problems: squatting and limiting rental for homeowners; lack of quality supply in big cities and the disproportionate contrast between prices and salaries for tenants. ‘Spain continues to mainly buy property, but renting cannot be a problem for owners or a luxury for leaseholders,’ claimed the expert.