Editorial
After a year of generalized increases in housing prices and sales of villas in residential areas at a dizzying pace, unprecedented in 25 years of our existence as an agency in La Moraleja, I am writing this editorial at a time of great uncertainty due to the outbreak of the war in Ukraine just a few days ago.
If this particularly relevant event had not occurred, sales expectations for the year 2022 would be very close to 2021 for the following reasons:
Firstly, because buyers in these last years after the pandemic have a lot of liquidity possibly due to household savings in that period.
Secondly, because financing is very cheap and although it was suggested that interest rates would rise this year, buyers were buying with little leverage, possibly due to the existing liquidity.
Thirdly, because there was optimism and confidence in the residential sector and many buyers were not only thinking of buying to improve their homes but also to invest in order to achieve secure returns in residential real estate.
Fourthly, because the residential supply has been shrinking as the pace of housing sales has been much faster than the supply of housing.
With the war in Ukraine, we question to what extent it will affect sales in the sector.
In the face of CPI increases and the general situation, this year investors are likely to bet on the real estate market against the volatility of financial investments.
The war is going to slow down the rate hikes that were planned in view of the need for central banks to support the economies.
Optimism and confidence will be affected by the war, and although many buyers will think of real estate investment as a safe haven, there will also be those who are afraid of losing liquidity in this situation.
The supply of real estate may also increase due to a certain fear of the crisis caused by the conflict in the world economy, and the prices of real estate, which we currently see skyrocketing, may moderate.
In conclusion, we believe that the year 2022 will be a good year for the sector, the real estate supply will increase, perhaps the prices will be more in line with the reality of demand and access to financing will continue to be very favorable.
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Berta Esparza
Director