2023-12-02 14:37:49
The sale and purchase of homes could fall another 10% in 2024 while prices will continue to rise with increases of between 1% and 3%, according to the forecasts of the Federation of Associations of Real Estate Companies (FADEI), which believes that in some areas are very high and should drop 10%.
The real estate agency employers speak of a change of cycle in a real estate market that will continue to be marked by still high inflation, high interest rates and a very turbulent global geopolitical situation.
Despite recognizing that prices in some areas are too high and should fall by at least 10%, FADEI predicts new increases – although of lesser intensity – for next year, which will continue to make it very difficult for an important part of the population buy a home in certain towns.
Regarding rentals, FADEI predicts that the interest in demand for this market will increase as there are more limitations on being able to buy, especially young people.
In this sense, he understands that rental prices will continue to rise in 2024 due to the lack of supply and the insecurity, which he maintains, small property owners are experiencing since the entry into force of the Housing Law.
“Both the limitation of prices in stressed areas, as well as the limit of increases in the CPI or the difficulty in being able to evict a defaulting tenant or a ‘squatter’ from your home mean that there is no more supply and prices continue to rise, says the president. by FADEI, Miguel Ángel Gómez.
According to the forecasts of the real estate association, the mortgage market will also be reduced in 2024 due to the reduction in sales. Furthermore, the rise in interest rates and other economic factors will mean that buyers will not be able to buy, since they will not be able to pay the mortgage payments they request and the entities will not grant them the necessary financing.
As a positive fact, it points out that it is likely that interest rates will no longer rise and that there will even be small decreases over the next few years, which would allow us to recover part of the demand that cannot be bought today, indicates the employers’ association, which is made up of 13 entities that represent some 5,000 real estate agencies.
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