What Will Happen To The 2023 Property Market?

2 Jan 2023 | Blog

Happy 2023! Yes, Tecnotramit starts this year with as much excitement as 2022 was closed. We believe in the positive energy law of attraction and hard work as the best ways towards personal and professional success. Optimism and determination accompany us daily when performing our professional duties. For this reason, we want to stand alongside our clients’ needs and continue to be one of the leading property and finance companies in Spain and Portugal this year.

If you are reading this, you are interested in how the Spanish property market will evolve. 2022 was characterised by instability due to the end of the pandemic and the start of the war in Ukraine, leading to multiple direct and indirect consequences on our economy. In this respect, our CEO, economist, and doctor in Economic Psychology, Vicenç Hernández Reche, has a lot to say.

Until there is a glimmer of certain stability for rising interest rates, uncertainty will keep on harming the residential market by slowing down any growth experienced during these last years. To the point of even lowering both the number of operations as well as prices once the year is closed. When the market sees an end to the rising price of money, trust and activity will be re-established, though not until the second half of the year,’ as indicated by the expert in a recent feature published in the financial newspaper El Economista.

Tecnotramit’s CEO claims: ‘New builds won’t have marketing issues, specially those that are already built and are practically all sold.’ This is because of the strong unbalance between the pace of constructions and the creation of new homes, which puts pressure on demand and therefore prices.

Where second-hand properties are concerned, there will be restrain due to financing issues stemming from both the impact of higher monthly payments as well as, primarily, the consequence this rise has on financial institutions’ risk policies which, even though have been less relaxed in the past years, now confront potential default issues they will want to contain,’ as signalled by the specialist.

Finally, Hernández Reche focuses on ‘the way economic uncertainty will affect job quality and inflation data which, although reduced thanks to approved measures, will still be abnormally high and dwindle families’ disposable income.’‘The upcoming months will be complicated but necessary to oxygenate the activity,’ as foreseen by the executive.