High rents, rising interest rates and tough mortgage lending conditions mark the outlook for the coming year. Inflation and rising mortgage rates are slowly taking their toll on families and sowing more uncertainty.
So far we have learned that, the rise in interest rates since last summer has caused the Euribor to soar above 3%, loans for the purchase and sale of homes have increased in the third quarter of 2022, the price of rents is increasing without balancing the market of supply and demand and, finally, sales of new construction have been falling in the last year.
“Although the latest inflation data show that inflation is more subdued, the struggle to cope with lasting inflation suggests that central banks are likely to raise official interest rates again. Rising mortgage costs are likely to make many people rethink the option of buying a home in 2023, and pressure on rents will increase. Wages, on the other hand, remain an unknown quantity, as well as the effects of the big economic figures, which are expected to be felt in various aspects, such as employment and housing prices. Today, everything seems to indicate that, with the interest rate hikes, there has been a change of trend in the housing market. It is possible that, despite the many uncertainties in the economy, house prices will fall in 2023,” says the OCU in its latest article published on the outlook for 2023.
According to Idealista, who has also launched an optimistic message is Borja Ortega, CEO of BNP Paribas Real Estate in Spain, who has acknowledged that “we are now more positive than in November and December. 2022 has been a record year for investment, and although in the last quarter it seemed that covid had been a joke with respect to what was to come, this has not been the case. We have to remain calm.”
Therefore, we can say, for now, that the real estate market is putting aside pessimism and showing a better than expected 2023.
In UTANDE Consultores Inmobiliarios, we have a partner with a great knowledge of the current market situation in our country, the developer AEDAS Homes. Thus, the real estate portal Idealista, publishes that, according to David Martinez, CEO of the developer Aedas Homes, “we have had an excellent 2022 in terms of deliveries and metrics. And the outlook is very good, because the imbalance between supply and demand is maintained. Month by month we are noticing an increase in sales, while, in the rental market, which are the lower value transactions, there is still a lot of room for improvement. I see a positive future both in the short and long term”.