2023-08-27 05:31:18
To have economic growth, one of the best options is to invest. Those who dare make an effort to give up present benefits for future ones, but there is always some risk. Some Spanish investors bet on the financial sector, others on technology, ETFs, textiles and a very large group that is attracted to the real estate market.
Concretely, 82% of Spanish savers want to invest in real estate, but do not know how to do it. Thanks to a modality called “crowdlending” it has allowed small investors to do so from amounts close to 250 euros. This is how they collect the data obtained by the crowdlending platform Civislend.
THE MAIN SOURCE OF INVESTMENT REAL ESTATE MARKET
More than half of Spaniards (61%) who buy a home prefer to use it for rent rather than make it their main or secondary home. Currently, 17% of Spaniards are looking for a real estate opportunity to invest and plan to buy one in the next 18 months. Despite the interest and seeing the sector as something safe, they do not have the necessary knowledge to undertake the operation.
39% of Spaniards do not consider buying a house because they cannot afford it, while for 13%, flexibility and mobility are the reasons that motivate them to prefer the rental system. The Spanish continue to bet on the real estate market as the main source of investment. In the case of having money, 79% would buy a home.
SMALL INVESTORS CAN SEE AN OPTION IN REAL ESTATE
In Spain, the real estate market is preferred by 3 out of 5 Spaniards to invest, due to its stability and permanent revaluation, despite the economic crises. Many who feel that the real estate market provides security do not dare to take the plunge because they do not have the necessary financial resources to do so.
Crowdlending is a type of loan through which it is possible to finance real estate projects through many small investors who contribute their capital in exchange for a return in a certain period of time. Crowd (Crowd) lending (lend money).
“As Spanish savers look for opportunities to invest their savings safely and profitably, the real estate sector remains an attractive option. However, banking restrictions and the rise in interest rates and the Euribor have limited the access of many to this option. Real estate crowdlending is presented as an innovative solution that allows savers to access the real estate market in a more accessible and diversified way. As this trend continues to develop, it is possible that real estate crowdlending will play a significant role in the evolution of the investment market in the real estate sector in Spain”, explains the CEO of Civislend, Íñigo Torroba.
The company has experienced a growth of close to 40% of investors who find in crowdlending the best formula to access real estate investment. Something that seemed like an unattainable goal becomes reality.
THE EURIBOR AFFECTS THE SECTOR
A very determining factor that directly influences is the euribor. This is the reference index that indicates the average average interest rate at which financial institutions offer to lend money in the market. Its value depends on the supply and demand for money in the European interbank market.. In August it has an average of 4.073%. It is one of the factors that most influences when paying the mortgage, especially the variables. According to data from the Bank of Spain, 38.7% of mortgages granted in 2023 are of this type.
Not only those with variable mortgages suffer, but the entire real estate market. Many investors are waiting for a more stable outlook. The forecasts for the remainder of the year and 2024 is that the sale of real estate will cool off due to the harsh conditions and the interest rate rises. Banks grant fewer and fewer mortgages, which makes it very difficult to access the purchase of a property to invest.
Up to 31.2% of the population considers buying a home if the rental price is equal to or higher than the mortgage bill, while 35% consider that current interest rates make this operation inaccessible to carry out your purchase.
The real estate market, despite not being at its best, has always had investors and it seems that it always will, but many take a pause to see how the picture develops.
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