Experts predict Spanish house prices to fall 3% next year
As the global economy continues to pick up, Bankinter's research and markets division released some positive news this week, saying that property prices in Spain could fall sharply next year and further into 2024.
Specifically, according to market expert Ramón Forcada, global real estate prices are expected to fall by 3% in 2023 and a further 2% in the following year.
The US may be the only exception, Bankinter believes, and while the downturn in Spain won't be dramatic, it's certainly an upturn worth "closely watching", especially given that its "immediate and significant" impact on consumption.
However, with no end in sight for the war in Ukraine, experts predict that the global economy will first have to deteriorate before it can get better again. To that end, the market could bottom between December 2022 and February 2023, but not sooner. That means "the market will stabilize and improve, but the slump must end before a recovery can begin."
All of these details were revealed in Bankinter's quarterly strategy report, which forecasts "an adjustment process in the face of persistent inflation, forcing the central bank to accelerate and prolong rate hikes", leaving Spain's economy in a precarious position for several months to come.
Experts stressed that the ongoing war would have "enormous" and far-reaching consequences, such as regionalization, scarcity of raw materials and other geostrategic challenges.