What do real estate investment experts expect for Spain in 2022

Housing transactions are set to move in a positive direction this year, according to the important players in the sector, although this does depend on various factors, such as the impact of the health situation (which is rising in urgency at the moment), inflation and the shortage of raw materials, which could lead to a rise in property prices. Given this scenario, what will real estate investment be like in 2022?

Spain is characterised by its great capacity to attract new investors. And although there was a slight lull in the first and hardest months of the pandemic, investment has grown again since then.

"With the gradual return to normality, the foreign profile is showing a growing interest in properties located in Spain. This is also reflected in the increase in national investors who have taken advantage of the pandemic to expand their savings and who see the real estate sector as a safe haven asset in which to invest", acknowledges the General Council of COAPI of Spain.

Real estate investment forecasts for 2022

From the point of view of the Comprarcasa real estate network, the current situation appears to shine in a positive light. "Investing in real estate continues to be an asset of interest and the main investment for many Spaniards. We are not only talking about investing in a first home, but also in a second home or buying with the aim of earning money through a rental income".

They comment that Spain has always been a homeowner's market. Therefore, the pandemic and the situation of uncertainty, increases, even more if possible, this interest as it is considered a safer and less risky bet. 

Therefore, in the coming year, "investments will continue in our sector because, according to the Bank of Spain's own data, real estate, with an annual return of approximately 7%, is a much more profitable asset than other financial investments. These returns are quite a lot higher than other investment assets such as government bonds, with a return of around 0.4%, or bank deposits, at 0.5%".

Reasons to invest

According to Anna Puigdevall, director of FIABCI, "the health crisis and the confinement measures have led to an increase in transactions". In this sense, she recognises that there are other factors that have favoured this situation, such as, for example, "the saving capacity of investors in the toughest months of the pandemic and the flexibility of banks in granting mortgage loans".

Investors have been able to take advantage of the health crisis to strengthen their economies and have taken advantage of the low interest rates granted, especially in loans for the purchase of housing. In FIABCI they say that "we have very low prices, but a very good number of operations and, without a doubt, a market that awakens the interest of international investors".

Where do the investors who buy in Spain come from?

Toni Expósito, CEO of Comprarcasa, acknowledges that Spaniards with a certain level of savings who are thinking of investing them will largely opt for the real estate sector because, in addition, mortgage solutions are really attractive, due to the low level of Euribor and interest rates.

Meanwhile, a good number of foreigners will be looking to invest in luxury homes, "which we believe will have a growth of around 7%, due to the operations that are being handled. In terms of origin, they will mainly be British, German, French or Moroccan".

For its part, the Association of Real Estate Agents of Catalonia (AIC) points out that the sector is mainly aimed at investors from northern Europe who want to come to Spain to enjoy our climate and to stay for long periods of time. They also highlight the growing interest of Latin American buyers, especially Argentinians and Ecuadorians.

Where will the most be invested?

Expósito, from Comprarcasa, believes that the urban centres, their peripheries, the Mediterranean coast, and the islands will continue to be the king of locations. And this is also reflected in prices, which are higher due to higher demand.

Despite the spread of teleworking, in areas of "Empty Spain" and the more rural areas "we have not detected a higher demand, so they will not be places of great interest a priori for investment in real estate".

They comment that investors, both professional and private, are aware that the location of a property, surrounded by good communications, services, university centres, companies, or coastal areas increases the value of that property. Therefore, these are the places that are of most interest when it comes to investing in real estate.

AIC highlights the interest in the Mediterranean region and predicts a good prognosis, stating that "there is currently a great deal of movement in the sector". And from FIABCI they highlight the interest in properties located in large capitals such as Madrid or Barcelona, where the cultural and leisure offer, as well as the professional opportunities are a decisive factor when choosing a destination to invest in. And they show a growing interest in the Mediterranean area, especially in properties located in the Balearic Islands.