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2022 comes with optimistic forecasts for Real Estate market trends. By the end of 2021 a slight improvement was already observed, but the first quarter of this new year shows good data which demonstrate the takeoff in the purchase/sale of properties

To understand what is happening and what will happen until December in Real Estate sector, it is important to know where we come from, that is, what the situation and trend have been during 2021. The year that we have already left behind, has been marked by a certain stagnation due to the coronavirus pandemic. The virus halted a nearly six-year bullish cycle in home buying and selling.

On the other hand, last year new tastes and needs appeared among the consumer as a result of COVID. Home confinement experiencing has caused a rethinking of the needs of the perfect home. At the moment, there is a greater demand for more spacious, functional flats and, if possible, with a balcony and/or terrace. In 2021 we must also add that the law of the housing market was altered with the arrival of new regulations such as the new cadastral reference value that, in fact, is marking this 2022. Finally, last October 2021, signs of an upturn began to be seen in Real Estate market. According to INE data, forecast for December 2021 was to reach the figure of 600,000 properties sold. Starting from this context, what do we expect for 2022? What trends are emerging in Real Estate market?

2022 Real Estate market trends

Everything seems to indicate that after a certain pause or slowdown, Real Estate sector is going to grow significantly this year. If the last quarter of 2021 already showed optimistic figures, it is not unreasonable to think that the purchase/sale operations will continue and even grow.

• Take off of the sector: If we look at the micro and macroeconomic indicators and at the growth forecasts of 5.5% set by the OECD, it is clear that Real Estate market is going to take off again. Other entities such as the Banco de España or the International Monetary Fund itself states a growth of around 6%. Real Estate market situation in many European countries has already started to show signs of clear growth. This is mainly because residential housing market is recovering from the pandemic faster than other parts of the economy.
• Interest in large cities: The large Spanish capitals and cities such as Barcelona, ​​Madrid, Malaga, Seville or Valencia are experiencing a good moment. The interest of foreign investors is increasing and there is a need to buy in these cities to make profitable investments. Therefore, if you are thinking of selling your property, it is an excellent time to do it.
• More mortgages to buy: Banks are lending more money, although the difference from 2008 is smaller. This past 2021 has been 38 percent of those granted 14 years ago. This data suggests that we are far from a “possible” bubble.
• Use of computer tools in the purchase/sale of housing: Online world has an increasingly important role and weight in the real estate sector. Most people start making decisions on Internet, or at least look for information. In this sense, a proliferation of this type of virtual tools is expected, such as those that Hermes & Mathew has used for years to promote the homes of its clients and which report such good results.

In short, 2022 is a year with good forecast for Real Estate sector. The interest in buying properties is increasing both among those looking for a first home, or who want to invest to make their purchase profitable. Above all this, banks are also starting to make it easier to obtain a mortgage loan.

If you are interested in buying or selling your flat, Hermes & Mathew is the reference Real Estate agency in Barcelona. Please do not hesitate to contact us.