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Colliers: New Home Prices in Big Cities to Rise by Up to 10% in 2022

Colliers forecasts a continuation of the current levels of housing demand, which could lead to 640,000 transactions by the end of 2021.

Colliers

Sales prices began to grow again in 2021, especially during the second quarter of the year. The strong demand of the second half of 2020 continued with somewhat more intensity in the first half of this year. The data comes from the real estate consultancy Colliers, which presented its annual report ‘The residential sector in Spain 2021’ on Tuesday.

“According to Colliers’ predictive models, we estimate an additional increase in prices of 1% to 2% by the end of 2021, both in new construction and used housing,” says Antonio de la Fuente, Managing Director of Corporate Finance at Colliers.

Furthermore, “by 2022, we see some price stability in general terms, although there could be increases of between 5% and 10%, more in new than used housing, in some of the areas where demand is growing strongly. Specifically, we see six markets where this phenomenon could occur: Madrid and Barcelona, the Balearic Islands, Valencia, Alicante and Malaga,” Mr De la Fuente stated.

Demand for housing in 2021 started strong. The first half of the year was the best series since 2008. The number of housing transactions was 63.7% higher than in 2020 and 10.7% higher than in the first half of 2019.

Read the full article in Spanish

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