Servihabitat foresees more than 500,000 home sales in Spain

Servihabitat Trends foresees a 5% growth in property sales in Spain. In this sense, more than 500,000 operations are estimated based on the demand that has been in the residential market in recent months. The report also concluded that the Spanish residential market will maintain a positive trend in the coming months, which also confirms its speedy recovery.

The study issued by the entity includes an analysis on the behavior of the main indicators in the Spanish residential market during 2022. This study focuses on the role that local investors have had in the sector, which they have found in the product real estate a great attraction for its stability and profitability.

The forecast for the next few months

The CEO of Servihabitat, Iheb Nafaa, said that the sector continues with the same positive trend, taking into account the different factors that may continue to drive the market. "The forecast is that the sector will continue with the same positive trend, and more if the different factors that may continue to drive the market are taken into account," he added, pointing out which were the factors that could drive growth.

The positive economic outlook and the arrival of European funds, among other factors, show a forecast of improvement in the macroeconomic projections for Spain. Thus, GDP growth of 6.4% is expected in 2021, one of the highest in the entire European Union. Consumer confidence also shows a positive trend, exceeding the data obtained at the end of 2019 by more than 13 points.

On the other hand, the general director of the wealth management business of Servihabitat, Juan Carlos Álvarez, affirmed that investment in wealth will continue to offer interesting returns with rates that stand at 7.6%. This despite the slowdown in the evolution of the rental market compared to that of the sale.

Currently, families' real estate wealth is at a decade high. 85% of the Servihabitat Network of Collaborating Agents (APIs) share a more optimistic view compared to the one held six months ago, where only 56% of the collaborators shared that there would be a growth trend.

Slight rise in house prices

The real estate service also foresees an increase in house prices of 1.4% at the end of the year. He predicts that the new construction, despite having presented a better evolution in recent months, will experience price adjustments. These forecasts are in tune with those made by economists, consultants and real estate companies, who affirm that, given this scenario of higher prices, we are at the best time to buy a home.

The new construction, despite having presented a better evolution in recent months, will experience contained price adjustments, so it will show a much more stable outlook. Thus, in annual rates, the differences between new and second-hand homes will be less marked than last year.

The rental market after the evolution of the pandemic

The demand for rent showed a slight drop, presenting a special sensitivity to the evolution of the pandemic in large cities. The number of homes that are rented is around 19% on an annual average, a figure close to that of 2019.

By type of housing and location, spaces open to the outside continue to be prioritized, and interest in renting outside the most central areas continues to grow, according to the opinion of the Servihabitat Network of Collaborating Agents (APIs).

The rental price showed a decrease in the annual variation rates since the beginning of the year, after the resistance shown in 2020, when it experienced a moderation trend. It is stated that this variation is due to the drop in demand and the increase in supply, also conditioned by tourist restrictions.

The real estate sector maintains its attractiveness for investors

The real estate sector remains one of the most stable and profitable in the last decade. This offers the investor returns of 7.6% if the revaluation of the property is added to the average profitability generated by the rental. Although the stock market situation has improved, it is expected that there will continue to be volatility in the markets in the coming months.

Regarding the investor profile, about 74% of the operations are carried out by small investors, which grew almost five percentage points compared to a year ago. In the last year, the average ticket per operation is mainly concentrated in the range of less than 200,000 euros.