Real estate market forecasts for 2022
We share some of the real estate market trends that experts predict for this new year: property prices, EURIBOR situation, approval of the New Housing Law, ...
House prices: will they continue to rise?
According to the forecasts of Caixabank, one of the most important financial institutions in the country, house prices will continue to rise in 2022. The latest study carried out by the institution considers that there will be a 4% year-on-year increase in prices.
The most optimistic scenario extracted from this analysis, moreover, would draw a rise of up to 7% taking into account an inflation rate of 3%. For 2023 the figures are similar: Caixabank forecasts another rise of between 3% and 4%.
As stated in an article in idealista.com, the bank is convinced that "favourable financial conditions will continue to support the rise in house prices".
EURIBOR: WILL IT STAY NEGATIVE?
Precisely related to this last statement by Caixabank is the forecast of the EURIBOR, the maximum indicator for most mortgages in Spain. According to a new report by Bankinter, the index will remain at -0.3% for the year 2022.
At the end of last year, the EURIBOR crossed the -0.5% mark again, reaching (once again) historic lows. This is a very important figure to bear in mind, as it is the sixth consecutive year in negative numbers.
For 2023 the Bankinter study predicts that the negative trend will continue and the European Central Bank (ECB) assures that there is no intention of modifying the interest rates dependent on this body.
NEW HOUSING LAW: WHO WILL BE AFFECTED?
In the course of 2022, the Council of Ministers of the Spanish Government will approve the Housing Law, which proposes measures that will affect homeowners and other agents in the real estate sector to a greater or lesser extent.
These include, for example:
- IBI surcharge for empty homes
- Personal income tax incentives for small landowners
- Allocate 30% of new developments to VPO (social housing)
The executive itself stated that "there will be a transition period of 18 months from the implementation of the regulation" (which would delay the implementation of the law until the end of 2023 and the beginning of 2024).
BUYING AND SELLING IN IBIZA: WHO TO CONSULT?
From our real estate agency in Ibiza we remind you that you have at your disposal a team of qualified professionals who will solve all your doubts about these or any other aspect related to the purchase and sale of properties on our island.
Photo: Adobe Stock
