The credit rating agency Standard & Poor’s (S&P) has summarized in a recent report what can be expected from the housing market in the main European countries for the next years.
From their analysis, it is shown that Spain will go from being one of the countries where the price will fall the most in 2020, due to the Covid crisis, to be the country where prices will grow the most in 2021
Specifically, the US agency, forecast the fall of the housing price in Spain this year at 1.4%. This is the second steepest decline amongst the European ranking, only surpassed by the 1.6% forecast of Ireland.
Portugal is the other country where red numbers are expected, although more moderate (-0.5%).
This latest market forecast suggest that the European house prices will continue to rise strongly, despite the covid-19 pandemic.
Despite the fact that Spain is one of the few European countries that will register declines in 2020, the numbers showed by the rating agency are much more optimistic than those of the market as a whole.
There are experts who speak of double-digit declines just this year, in line with the unprecedented contraction that the economy is going to suffer.
On the other hand, S&P estimates a rapid rise in house prices in the domestic market and predicts an increase of 1.8% already in 2021, in line with Sweden and only surpassed by 2% of Germany.
Again the rise will keep going in 2022. By then, the rating agency expects a rise of the house prices in Spain of up to 4.5%, only surpassed by 4.6% of Ireland and 5% of Portugal.