Will 2022 be a good year for property investment in Spain?
Will 2022 be a good year for real estate investment in Spain?
What can we expect from this 2022? The forecasts of the Organization for Economic Cooperation and Development (OECD) reflect that the recovery will continue its course, given that the world is better prepared to face the pandemic and that the monetary and tax stimuli will be maintained during the year that has just begun. In summary, the world economy will grow by 4.5% in 2022, after closing 2021 with a rise of 5.6%.
And it is at this point where we ask ourselves if it will be a good year for real estate investment and the answer is a resounding yes. But let’s look at the data that proves this claim.
The Bank of Spain indicates that in the second half of 2021 in Spain, the increase in housing prices and rental profitability, added together, reached 7% year-on-year. The rise in the value of houses contributed 3.3 points to this figure and 3.7 points to the gross profit (without discounting expenses) for rent. These are the levels at which the real estate market moves, much higher than the 0.4% achieved if government bonds had been bought or the 0.5% for bank deposits.
The real estate sector is on the rise
Real estate continues to prove its strength despite the complications of the pandemic. Worldwide, transactions totaled $292 billion in the third quarter of 2021, up 77% from the same period a year earlier.
In Spain, real estate investment in the third quarter grew by 62%. And the outlook remains favourable.
Where are you going to invest more?
In the urban centers, their periphery, the Mediterranean coast and the islands will be the locations that will reign this 2022.
In addition, investors are aware that the location of a house surrounded by good communications and infrastructure increases the value of the home.
What will the houses that are bought to invest be like?
What house to buy? It may be one of the questions that savers who want a brick ask themselves. And, in this sense, size can be one of the keys.
The star home will be 2 and 3 bedrooms in order to attract a more permanent public. In addition, it will be important for the home to have a storage room and a garage, since with the pandemic many people are opting for private transport.
Therefore, according to the data handled so far, everything seems to indicate that 2022 will be another great year for the real estate sector. If you have not yet decided to diversify your money, we advise you to do so in 2022.
How to stay up to date on real estate investment?
As with anything, the magic formula doesn’t exist. But the best way is to find out about real estate investments and nothing better than contacting us.
Marbella WOHNEN Immobilien
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