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The Real Estate Sector Anticipates An Increase In Prices In New Construction

Prices will rise more strongly from 2022

There is unanimity. The players in the real estate sector gathered in the great conference ‘The real estate sector as an economic engine of Spain’ organized by elEconomista predict that the price of new construction homes will rise in the coming months.

It will do so moderately during 2021, but will pick up momentum in 2022. Second-hand housing prices will have a different fate, which will continue the adjustment initiated during the pandemic. The crisis derived from the coronavirus has confirmed that both segments walk at two speeds.

“There will be a moderate price growth in new construction that could increase in 2022. It is time to buy,” said Borja García-Egotxeaga, CEO of Neinor Homes , who blamed the increase in prices on higher construction costs and increase in the price of land. “The promoters will have no choice but to get the most expensive promotions,” warned the Basque businessman.

A hypothetical 4% increase in construction costs would translate into a 1% increase in house prices, according to estimates by Aedas Homes. The director of Innovation and Brand of the listed company, Javier Sánchez, believes that the sector is in a post- pandemic expansionary cycle that will last several years and that is marked by many factors, such as the injection of European funds or economic evolution.

“The forecast of the Bank of Spain is that GDP will increase by 5.8% next year. Furthermore, we also have a population pyramid that will generate a million new homes in the next ten years .

To this we must add that there are There is a clear imbalance between supply and demand , that household savings are at historical maximums and that interest rates are at minimum potential inflation scenario during the next few years. They tend towards the construction of new construction that is more sustainable , of higher quality and more energy efficient, “said the head of Aedas Homes.

For his part, Juan Antonio Gómez-Pintado, president of Vía Ágora , also predicts a rise in prices for new construction homes. “It is time to buy without a doubt. The trend this year and next year is one of rising prices.” Pedro Soria, Tinsa’s Commercial Director, has spoken along the same lines , who has placed great emphasis on differentiating between new- build and second-hand homes.

” The trend will be positive between now and the end of the year, but new construction and second-hand work must be completely separated. The former will rise in the areas with the most dynamism and demand – it will do so at around 1% -, while the second will drop moderately, there are areas where the adjustment has reached 5%, “he said.

The price of housing grows at the lowest rate in seven years after rebounding 0.9% in the first quarter
The price of housing grows at the lowest rate in seven years after rebounding 0.9% in the first quarter

Regarding second-hand housing, José Luís Miró, president of Almar Consulting , believes that it will take longer to recover the levels prior to the crisis derived from the coronavirus. “The price of the work will continue to rise due to the lack of land to develop projects and the length of the processes. However, the second hand still has to continue with the adjustment and it will take some time to recover and many cases cost a lot to sell, “he warned.

The real estate meeting held on Tuesday 29 and Wednesday 23 is sponsored by Aedas Homes, Almagro Capital, Almar Consulting, Caleido, Carmila, Culmia, Habitat Inmobiliaria, Inmobiliaria Espacio, Lar España Real Estate, Grupo Lar, Madrid Nuevo Norte, Metrovacesa, Neinor Homes, Sonae Sierra, Tinsa and Vía Célere.

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