Real Estate Prices 2022 in Spain should go up 10%
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The year 2022 has started strong with strong inflation at the price level before the Russian invasion in Ukraine and the end of COVID 19 that has accelerated this. Buyers after being locked out for almost 2 years by COVID now want to buy.
The greatest risk for this year is inflation worldwide: it has gone from 6.5% in December 2021 to 9.8% in March 2022 in Spain. In this type of context, real estate assets are the best hedge. In the first quarter of 2022, real estate transactions amounted to 180,000 properties, rising 27% in 1 year, thanks to investor demand, foreign buyers and an increase in mortgages given by banks.
The biggest risk will be if the European central bank raises its variable interest rate too quickly but for now they are talking about ending quantitative easing before potentially raising it a bit in 2022 on July 21, 2022 to 0.25%. The GDP growth forecast is 4.3% for 2022. The real estate price forecast for 2022 for the real estate market in Barcelona is a 10% rise but it will depend on the appetite of foreign buyers in a city that is sometimes too regulated . An increase of 10% is expected for real estate, more than the inflation forecast of 7.5% for the year 2022 by the Bank of Spain.
According to real estate portals, prices are currently rising by 1% per month in Barcelona. The average price in Barcelona for March 2022 is €3,972/m2, 1.1% higher than in February. The most expensive district in Barcelona follows Sarria Sant Gervasi with €5,336/m2 +1.8%, followed by Les Corts with €4,897/m2 -0.5%, Eixample with €4,609/m2 +0.3%, Gracia with €4,258/m2 -0.5%.