After the Covid-10 pandemic, the real estate sector closes the year 2022 much better than expected.

Real estate investment in Spain has reached 17,500 million euros in the year 2022 that is ending.

The real estate sector in Spain recovered quite quickly after the pandemic due to the European tax policies that have again moved a stream of foreign buyers who want to invest again in brick in Spain, because it is a safe European country, developed with a varied and rich culture and gastronomy and without a doubt with one of the lifestyles most desired by Europeans.

The year 2022 has been a year for Spain with very positive real estate investment levels, including real estate investments on the Costa Blanca.

As idealista analyzes and forecasts, “2022 has been the best year in terms of sales since the bursting of the real estate bubble and will end with more than 600,000 homes sold. It is possible that in 2023 the sector will begin to return to around 500,000 homes sold in a year."

Although it seems that 2022 has been the icing on the real estate cake, that this coming year 2023 will reduce and stabilize the growing curve in the sale of homes that has occurred this year 2022, inflation is the consequence that we are experiencing this year, which has reached 10% in August 2022, directly reducing the individual's ability to save as a direct consequence: the drop in the volume of mortgage transactions.

The great culprit for the inflation of 2022 and 2023 is the war between Russia and Ukraine and the decisions that are being made around this political-war event.

It would be impossible to talk about inflation without mentioning the tool that tames it; the interest rates.

And who determines interest rates?

As Help My Cash well explains in its article;

“Central banks have a tool to contain inflation: interest rates, which define the price of money. By increasing the rates, the interest on current loans (such as personal or mortgage) also increases. With more expensive credits, ordinary people will consider twice whether or not it is convenient for us to hire them. Many of us, in fact, will decide not to.
This is how central banks manage to reduce the global demand for products and services (less loans = less consumption) and cool down the economy, so that prices do not continue to rise exorbitantly. The European Central Bank raised interest rates four times in 2022, from 0% to 2.5%.”