The reduction in operations will be mainly due to inflation, high interest rates and the geopolitical situation
MADRID, 1 Dic. (EUROPA PRESS) –
Home purchase and sale operations will be reduced by 10% in 2024 and the average purchase price will rise between 1% and 3%, according to the forecasts made by the Federation of Associations of Real Estate Companies, Fadei, the real estate association. ‘ Spanish.
“We will enter a change of cycle in which we will see a reduction in operations of 10% caused by still high inflation, high interest rates and a very turbulent global geopolitical situation due to the war in Ukraine and the conflict between Israel and Gaza “explains the president of Fadei, Miguel Ángel Gómez Huecas.
Regarding purchase prices next year, the employers’ association emphasizes that in some areas prices are too high and should drop by at least 10%. However, it is expected that the average price will rise by up to 3%, which will generate more difficulties for a part of the population when buying a home in some areas.
“Banks are granting mortgages for 80% of the value of the home, amounts that are insufficient for the majority of potential buyers,” laments Gómez Huecas.
Fadei also foresees that interest in rental demand will increase as there are more limitations on being able to buy a home. In this sense, the president of the employers’ association explains that despite the fact that Spain is a country of homeowners, young people do not have easy access to housing and a closer relationship between the public and private sectors in the area of housing would be necessary. housing to be able to increase the affordable rental stock.
Likewise, Fadei predicts that rental prices will continue to rise in 2024 due to the lack of supply and “until a solution is found to the insecurity of small savers due to the entry into force of the Housing Law.”
“Both the limitation of prices in stressed areas, as well as the limit of increases in the CPI or the difficulty in being able to evict a defaulting tenant or a ‘squatter’ from your home mean that there is no more supply and prices continue to rise,” says the president of Fadei.
Finally, according to the forecasts of the real estate association, the mortgage market will be reduced in 2024 due to the drop in sales.
Furthermore, the rise in interest rates and other economic factors will mean that buyers will not be able to buy, since they will not be able to pay the mortgage payments they request and the entities will not grant them the necessary financing to carry out the purchase. operation.
“Not everything will be bad news, since it seems that the rate increase is going to be paralyzed, even with small decreases over the next few years. This will be a very good sign for the recovery of that part of demand that cannot buy today “concludes Gómez Huecas.
