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What 2021 Holds for the Real Estate Sector, According to the Economists

Covid vaccines and European reconstruction funds will form the cornerstones for the economists, who expect house prices and demand to fall in 2021. Meanwhile, the rental and logistics businesses will be in demand across Europe.

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Both Caixabank and BBVA Research believe that the bulk of the price decreases in the residential sector will take place during the first half of 2021, with the hope that the recovery may begin in the summer.

“The second wave of the virus has led us to revise down our forecasts for 2021, although recent advances in the health sector provide some signs of hope”, explains Judit Montoriol Garriga, Economist at Caixabank. “It is possible that with the boost in activity expected with the arrival of vaccines and the funds linked to the NGEU (Next Generation EU), the real estate sector could be one of the leaders in the recovery”, points out Miguel Cardoso, Head Economist at the bank.

Read the full article in Spanish.

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