We all noticed that in the Costa del Sol and worlwide house prices have gone up in the last years and that there is no sign of slowdown.
Contrary to what many analysts predicted a year ago, the prices of the properties have increased again in 2022. Up to the first quarter, the yearly growth rate was 5%, clearly indicating an upward tendency.
Despite factors like increasing mortgage rates, which usually have a negative impact on property values, the rise in housing prices has persisted. The statistics still demonstrate how robust and pricey the industry is.
Historically, property prices rise when inflation rises. This is because inflation makes housing more expensive to build, increases the price of new homes, and reduces the willingness to build.
According to Idealista, one of the main real estate portal in Spain, the Expert Eduardo Molet does not see a short-term pricing decrease. “Price movements in the real estate market are consistent over time and are smooth.” The second half of the year will also witness an increase in home prices, according to Comprarcasa, “mainly due to the inflation, uncertainty and the tension in the global political-economic framework.
According to the Business insider analysis , foreign sales started to increase again at the end of 2021, particularly from foreigners living in Spain. Both foreign and Spanish buyers, which makes up the majority of demand in the nation, increased in the early months of 2022 ( Tinsa)
Both Malaga and Palma de Mallorca have observed this growth, in the city and the areas close by.
Given the consequences of the highly likely gas shortages in their countries and the high price, as a result of the conflict in Ukraine, taking advantage of our relatively lower prices, and most importantly due to the wonderful climate of Spain, it is forecasted that a much larger number of Central European pensioners will choose to spend this winter in Spain.
Should I Buy a Home Now or Wait?
Purchasing a home on the Costa del Sol is a very individual decision. Homes are typically the biggest investment that a person can make in their lifetime, therefore it’s important to make a solid financial analysis before deciding to buy a property.
What many experts think is that it is not a good idea to try to time the market or predict what will happen in the future and by the time we wait we may lose the property we like. Instead, it’s best to make purchases based on your needs and budget.
For any property advice please contact us, we will be glad to help you with your home search.