MADRID, Oct. 11 (EUROPA PRESS) – The average price of housing in Spain will rise 2.5% year-on-year at the end of this year and will not experience “significant” drops until the first half of 2024, according to forecasts from the real estate network donpiso published this Wednesday.
“Between now and the end of the year we are not going to experience a deflationary process in housing prices in which we see significant drops and we may see them during the first half of 2024,” stated the deputy general director of donpiso, Emiliano Bermúdez.
According to donpiso, the Spanish housing market will close 2023 with a certain balance between supply and demand in the segment of buying and selling real estate despite the rising cost of life and mortgage financing.
“This is not a new situation. We have already seen it in other moments in which the real estate market registers an adjustment process and the drop in sales is transferred to prices some time later,” said Bermúdez.
The deputy general director of donpiso explained that housing prices are now stabilizing because the market is in contraction. “If last year it rose around 3% year-on-year, surely this year we will see increases below 3%, but increases nonetheless,” he added.
According to donpiso, the large capitals will register the largest price drops due to the decrease in demand, the Cantabrian coast will be the region with the greatest increase in interest for the purchase of homes, and the archipelagos are already in a stabilization phase.
Thus, donpinso’s forecasts suggest that the most dynamic markets will continue to be the large capitals such as Madrid, Barcelona, ??Malaga, Valencia, Seville or Bilbao, as well as their metropolitan areas, and the coasts of the Valencian Community, Andalusia and Murcia.
For its part, the Cantabrian coast will be one of the regions that will experience a greater rise in interest in purchasing homes in the coming years due to its pleasant climate in the summer months and the competitiveness of its prices, says the real estate agency.
Despite the rising cost of life and financing, sales and housing prices have fallen, although less noticeably than expected, says Donpiso, who adds that the situation in the purchase market has put rents even more under pressure. in large cities, since part of the demand has chosen to rent instead of buy.
“Prices in the large Spanish capitals are more stressed and with high volumes of demand, so it is in those areas where the drop in interest in buying homes leads to a more evident contraction in prices than in less in-demand markets,” Bermudez says.
FALL IN HOUSING INVESTMENT
Along these lines and with regard to the behavior of real estate investors, the deputy general director of donpiso warns that a drop in investment in housing to make it profitable through rental is already being noticed, especially in small and medium-scale investment. , apart from large real estate operations.
“The measures adopted regarding rentals following the entry into force of the Housing Law do not encourage the growth of investment in the real estate market,” lamented Bermúdez.
