At HousinGo we have analyzed the real estate market in Spain for 2023, specifically in Barrio Salamanca in the city of Madrid. And this is our prediction for the real estate market in 2023:
- While the buying and selling market in Spain will suffer a deceleration, in Madrid and Barcelona they will continue to have a long run.
- The rise of the mortgage loan and the Euribor will hurt Spanish families when it comes to cashing in on a home.
According to an article by "El Idealista" published on its platform on December 14 (based on a survey of real estate agencies across the national scene), 42.8% provide two interesting facts: in 2022 turnover will grow by more than 10% and for 2023 they expect a growth of less than 1%. This contrasts with the reality of Madrid Capital, where growth is still expected based on foreign capital investment.
- As for the Community of Madrid: in 2022 the price of housing in Alcobendas rose by 15%, in La Rozas by 11.7%, in Barrio Salamanca by 7% and in Chamberí by 4.7%.
The difference is that in Alcobendas they are homes as a dormitory town of the capital, for families, and in Madrid center as investment or luxury residences (which contributes to a safe capital).
- We agree that the price increase both for sale and for rent, will be less than half that in 2022, as there must be a "natural correction" of the market that was exorbitant after the pandemic.
If in 2022 it grew by 7%, this year it will be around 3%, and predictions point to the high standing or luxury product growing a little more than the average. In HousinGo we will boost our current portfolio of more than 300 properties that we manage every year on a recurring basis for rent.
Real estate market in Spain: forecasts for 2023
We are aware of the need for regulation of the real estate market in Spain, especially in cities like Madrid. Last year's sharp rise in the CPI affected an increase in housing prices in areas of central Madrid.
The correction in the market will come from the natural need to balance prices in relation to supply/demand. In Barrio Salamanca from 7% in 2022 we will go (according to forecasts for 2023), to 3% except in the super luxury sector where the price increase will reach 4%.
In HousinGo we are going to focus a lot on the final buyer to find the home they are looking for, according to their needs and budget, and thus be able to guarantee the product and the investment made.
Evolution of the real estate market in Spain
The evolution in HousinGo has been marked by a pandemic. From the beginnings in the summer of 2019 and from the opening of the first office in Ayala street in October 2020, to the second in Serrano street in 2021, the growth each year of HousinGo has multiplied by 3. For this year 2023, with the deceleration expected for the real estate market, at HousinGo the goal is to grow by about 156%.
To do this we will focus on large investors who buy older homes to renovate and then rent or sell. In addition to the portfolio of landlords that we already have, this new way of recovering a property that is first sold and then returned to the real estate agency to be rented or sold, is a line of business very typical of city centers such as Barrio Salamanca or the Chamberí district of Madrid.
David de Gea's opinion
Looking at the prospects of the real estate market 2023, there is less and less supply of luxury housing in Madrid. The law of supply and demand is what sets the prices and with less supply but a lot of demand, prices go up. This ensures a rising market in terms of prices.
To this we must add that Latin American investors or Latin American fortunes, that due to problems in their country, decide to move to Madrid, (a safer and freer city), are looking for this type of housing and do not need Spanish mortgage loans that are increasingly higher (in addition to the current parity between the dollar and the euro, which also influences).
The current percentage is 70% for sale and 30% for rent. As it is selling well (either for residence or as an investment), there is less rental supply, despite the fact that demand is very high. This also defines the rising prices when it comes to leasing.