The shock of the pandemic was expected to result in a major correction in house prices. However, the intensity of the adjustments is not proving to be as abrupt as was initially expected, according to the real estate portal pisos.com. It estimates that the house price decreases originally forecast for 2020 will now be carried over until 2021 and 2022, when it foresees declines of between 5% and 7%, according to its predictions.
“The first forecasts suggested that 2020 would close with a drop in GDP of around -10%. However, that reduction is now expected to be much more moderate, ranging between flat growth and -2%. Everything seems to indicate that the decreases will be seen in 2021 and, to a lesser extent, in 2022. As such, we expect to see house price decreases of between 5% and 7% in 2021”, says Ferrán Font, Head of Research at pisos.com.
Read the full article in Spanish.