If you are considering selling a house, you will be interested in finding out the property market trends for Cumbre del Sol this year.
The property market is constantly evolving, and if you want to maximise the value of your property, you need to keep up-to-date.
Knowing what purchasers want or are looking for will help you meet your goals.
What are the trends in store for us this year?
Despite the unstable international situation, it can be said that 2022 was a big year for the sector. A good estate agency in Cumbre del Sol will confirm the dynamism seen in the market over the past twelve months. It seems that optimism continues to rule in 2023. This is what can be expected in the coming year:
Fewer rental apartments
The rental market has seen years of increasing prices due to the increase in demand. There are no forecasts for this to change over the coming months, in fact, the opposite is true. This has a lot to do with the government’s announcements that rental rates will not increase by more than 2% in 2023. This would be a setback for many owners who would prefer to leave their properties vacant rather than rent them out.
This means that supply would fall, particularly in big cities. This would lead to a significant decrease in the number of rental properties of around 20%. This would translate to greater strain on market prices.
New builds will still be attractive
New builds have always been sought after by purchasers, despite the fact that they are more expensive than other properties. This has led to the growth of a robust and solid demand, making them less vulnerable to the whims of the market. This has an impact on both investors and new owners, so it doesn’t appear there will be any changes in 2023.
What is more worrying for the sector are the challenges ahead, particularly those relating to new legislation and the complexity of regulations. The autonomous communities have a great deal of power in the new build sector, so each has it’s own legislation. Another issue will be the shortage in qualified labour that the sector has been experiencing for years.
The war in Ukraine and the shortage of some raw materials are both going to be felt over the coming months. Most significantly, it will be concern about inflation that will affect the release of new builds onto the market.
Sustainability and selling your house in Cumbre del Sol
Sustainability is an unstoppable trend. As well as being an Agenda 2030 objective, it is already fully integrated into many company strategies. The property market was not going to be unaffected by this. This is, first and foremost, because society is increasingly aware of responsible consumption and wants to avoid products and services that are not committed to sustainability.
That’s why we’re going to see many sustainable designs and constructions this year. This impacts on both the materials used and the way space is used. All these elements are increasingly influential in property purchasing decisions, so they should not be overlooked.
Pre-owned home prices will fall
Following the record levels of pre-owned property purchases recorded in 2022, it seems that this market will calm down. The gradual rise in interest rates (which looks set to continue this year) is one of the factors to blame for making purchasers think twice. This is because mortgages are becoming increasingly expensive and buying to invest is becoming less attractive and profitable.
In Spain, both purchasing power and saving levels will slump, affecting the property market. In fact, some studies from the banking industry predict that the number of sale agreements of this type will decrease by 15%. This does not mean that the number of sales in Spain will decrease or that we are facing a bubble in 2023. It just means that the number of agreements will adjust, growing on average by 2% throughout the country.
The main reasons why we won’t be expecting an abrupt drop with regards to this type of property is that they continue to be scarce, particularly in major cities.
In conclusion, the property trends in Cumbre del Sol will include a readjustment of the sector in relation to certain property types. We will experience a slight drop in pre-owned homes while new builds will maintain their appeal in 2023. Experts are not expecting any serious upheaval, but it is logical that the sector will be influenced by economic and political developments. Contact us to make the most of the opportunities on the property market.