Real estate trends for 2018 in Spain: what can we expect
Although we can not predict the future, it is true that some of the trends at the end of this year will be repeated in the next, and some changes will come.
The real estate sector suffers constant variations, especially from one year to the next. Normally at the end of the year we can already see some of the trends of the following.
The real estate sector in 2017
In Europe, geopolitical uncertainty has moderated the expectations of investors in the real estate sector. However, it remains a very attractive market thanks to the relationship between risk and profitability, according to the PwC Real Estate Market Trends in Europe report 2017 and the Urban Land Institute.
After several years of dynamism, the profitability expectations of the real estate sector in Europe have moderated this year. In addition, investors are changing their habits and are betting more and more on alternative segments. These include accommodation for students, hotels and residences for the elderly.
Madrid and Barcelona are still two of the most attractive cities for investors, the first one being in the top 10 and the second one among the 20. That is because of the rise in rents and the improvement of the economic situation.
Trends for 2018
Technology will be one of the key points for the growth of the real estate sector in 2018. In recent years there have been attempts to incorporate new techniques to both cities and homes and the real estate market itself, and 2018 may be the year of the definitive bet in this way. Thus, in addition, we would be able to optimize resources, and get closer to the smart city ideal.
Although there is a certain political instability that has caused investments to fall at the end of this year, it is expected that from January they will return to normal and finally increase.
The rents have reached very high prices in 2017, and will stabilize until completely regulated. There has been a very important increase due to the increase in demand, but the municipalities are considering regulating prices in some way to make housing accessible to all. Will this be the year of regularization?
In recent years many citizens have joined the rent because of the impossibility of buying a home, but thanks to the generalized improvement of living conditions by the end of the crisis this is changing. In addition, banks gradually give back mortgages, allowing many people to consider buying.
Many cities in Spain are betting a lot on improving their positioning abroad. That is why, in addition to Madrid and Barcelona, other cities will be important this coming year. It is the example of Bilbao, chosen as Best European City 2018.