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Real Estate prices are estimated to drop as much as 7% (2023)

Investment opportunities arise in real estate

According to CAIXABANK, the price of housing in Spain is expected to fall by as much as 7.1% in real terms in 2023, after accounting for inflation.

If economic conditions deteriorate further in the coming years, it's possible that we could see price-drops similar to those experienced during the 2013-14 recession, when prices fell by around 40% in some areas.

It's worth noting that location is an important factor when it comes to investing in real estate. Premium locations may be more resistant to price declines during times of economic downturn.

Some notes for consideration:

  • The predicted decline in housing prices in Spain is likely due to a variety of factors, including economic uncertainty and the potential for a slowdown in the market.

  • These macro-economic conditions might be affected among other things by the current Russia-Ukraine war, which might come to an end hopefully soon.

  • While the overall housing market may see a decline in prices, it's important to keep in mind that location can have a significant impact on the value of a property even in times of harsh downturns.

  • If you're looking to invest in interesting neighbourhoods in Spain, it may be worth keeping an eye out for deals that may arise due these market conditions. This could be a good opportunity to get a property at a discounted price, especially if you're willing to put in some work to fix it up or renovate.

  • It's also worth noting that while the housing market may be facing some challenges, Spain is still a popular destination for tourists and property buyers, which means that there may still be opportunities for investors to turn a profit. It's important to do your research and carefully consider the potential risks and rewards before making any investment decisions.

  • Another thing to consider is the growing interest in rural areas, where many have choose to relocate recently, which is affecting the sale prices in areas that historically had less attractive.

If you're interested in investing in interesting neighbourhoods in Spain, there may be opportunities for great deals to emerge as market conditions change. Keep an eye out for these opportunities, but be sure to do your research and consider the potential risks and rewards before making any investment decisions. Tip: Based on my own experience, I'd recommend to check up, and look for properties in small towns located at about one hour distance from the main Capitals of Province. Whether for rent or buying, you'd be surprised of the price-differences compared with those located in the center of popular cities.

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