Despite the uncertainty generated by the coronavirus crisis, the property market ended 2021 on a positive note and strengthened its recovery with unprecedented figures since the burst of the 2008 housing bubble. Looking forward to 2022, maintaining stability and avoiding new upward trends caused by rising inflation will be the big challenge.
In this regard, Vicenç Hernández Reche, Tecnotramit’s CEO and Chairman for the Spanish and Catalan Associations of Property Agents, considers the impact of inflation on the property market is ‘a fact’.
Hernández Reche explains: ‘We need only look at the evolution of housing prices -both new builds and second-hand homes- accompanied by large annual growth rates.’
The expert suggests this market trend hides a large ‘social component’, since the main reason for the steady rise in prices was lockdown. People started to consider where to live and what to do with their savings -which increased- due to more time spent at home and restrictions on international mobility.
‘People bought en masse since a much higher savings rate was created and interest rates plummeted. Prices have been evidence of the aforementioned. It seems this will be a general trend for the entire year,’ concluded Tecnotramit’s CEO.