2023: Strong long term-prospects for Spanish real estate
For Hansson & Hertzell, 2023 will be an incredibly interesting year. Not only are we bouncing back from a global pandemic that single-handedly flattened the real estate market worldwide, but we are also on the doorstep of a war fought close to home. Mortgage rates, inflation, and uproar does not sound like a good recipe for real estate.
So, why are experts predicting such strong long-term prospects for market?
Let's look at the facts:
- Inflation is back. Everywhere. Yes, we are starting off on a negative note because a short pause in the market is to be expected. Mortgage rates are higher, however compared to inflation (especially in other European countries), they are really not that bad. This results in more space in the market, with less action from the Spaniards. As many foreigners are cash buyers and only need mortgages sparsely, they will find good deals here, as the market is a lot less tense for them.
- Spanish property prices continue to be favourable in comparison to other European markets. Moreover, the cost of utilities is up to 75% cheaper than almost any other country in Europe. The current gas and electricity prices are better too. We predict that it this will only improve because Spain is a leading country when it comes to renewable energy and development.
- Working from home stays popular. It is a growing trend, as we have the experience of working differently, many leave the city centres and choose more favourable locations; like the warm, affordable, and sunny Spain.
- Foreigner activities have returned to normal pre-covid levels, proving an incredible resilience in the Spanish economy. The IMF published a report in November stating that the economic growth for 2022 projected to reach 4.6% and for 2023 to reach 1.2%. This puts Spain in Europe's top.
To sum it up, inflation is everywhere, but seems to result in a calmer market for cash buyers and foreigners. The property prices are very favourable in comparison to other countries, as are the prices for gas, and costs of living.
The Spanish economy seems to have bounced back incredibly fast, and to top it off the environment in Spain is perfect for a post-pandemic, easy, and affordable life.
This is why we are hopeful for the future, and we are excited to see what 2023 will hold!
If you are keen to know more about the specific opportunities mentioned before, contact us! We have more than 13 years of experience and will happily assist you with any questions, suggestions, or comments you may have. We are excited to take this opportunity and innovate the market of real estate together.
Don't forget to follow Hansson & Hertzell on Facebook, LinkedIn, Instagram, and YouTube, to stay updated with all our new projects!
Or take a look at our portfolio of Quality Properties:
Back
Call us
Send message
