According to data on purchases during 2021, Spaniards have opted to buy homes instead of renting them. Last year’s transactions recovered and even surpassed the number of purchases during 2019 before the pandemic outbreak.
Housing prices are expected to rise in 2022 between 5% and 6%, according to data from the Spanish Association For Value Analysis (Asociación Española de Análisis de Valor, AEV). This price increase is conditioned by three factors: the pandemic, inflation, and shortage in supplies. Carles Solé, Tecnotramit’s Mortgage Loan Manager, assures the property market will continue to rise for some time. It can always slow down, however the first quarter of 2022 at least points to evolving positively.
Housing requests were concentrated in Spain’s main cities, as well as on the Mediterranean coast and the islands during 2021 as they are areas that condense economic activity, employment, and tourism. This trend is expected to continue into 2022. For this reason, Solé bets on cities that are not autonomous community capitals yet have significant economic activity, like Huelva, Lerida, Gerona, Malaga, or Vitoria. The investment is lower than in Madrid, Barcelona, or Seville but profits are higher.
One of the big issues for 2022 is the evolution of inflation. The European Central Bank (ECB) does not foresee a rise in interest rates, so financing conditions should remain favourable. If interest rates rise, the EURIBOR will do too and will affect fixed rate mortgages. Even so, the expert assures a rise would not unbalance the situation from one day to the next as fixed and variable rate mortgages would continue to have low interest rates.