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ARCHIVED - House prices in Spain set to fall in 2023 and 2024
Experts believe that residential housing costs in Spain will fall by 3% next year
As the global economy continues to spiral, Bankinter's analysis and markets department has brought some positive news this week, claiming that house prices in Spain are likely to drop markedly next year and continue to dip into 2024.
Specifically, housing prices should decline worldwide by 3% in 2023 and another 2% the following year, according to market expert Ramón Forcada.
The USA might be the only exception, Bankinter believes, and although the fall in the Spanish market won’t be dramatic, it’s certainly a change in trend that should be kept "very much in mind", especially given the "direct and notable" influence this will have on consumption in general.
However, with no end in sight for the war in Ukraine, the experts predict that the global economy will have to get worse before it gets better. To this end, it’s likely that the markets will bottom out between December 2022 and February 2023 but not before. This means that "the market will stabilise and start to improve, but it will have to finish breaking down before it starts to recover".
All of these details have been published in Bankinter's quarterly strategy report, which forecasts an "adjustment process in the face of sticky inflation that is forcing central banks to accelerate and extend rate hikes," which places the Spanish economy in a precarious position for the next several months.
The ongoing war, its experts have stressed, will have "enormous" and far-reaching consequences such as regionalisation, raw material shortages and other geo-strategic challenges.
"With all that at stake, the likelihood that this issue will be closed in the short term and stop putting pressure on inflation is low," Mr Forcada concluded.
Also of interest: Why buyers are opting for modern homes in Spain
Image: Archive
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