What better plan for this new year than to find the house of your dreams? Or making a profitable investment that will allow you to live more comfortably. If buying a home is among your goals for 2022, it’s important to know how the real estate market is expected to behave.
The real estate market of the metaverse
It still sounds like science fiction, but the metaverse is already here, and you’d be amazed at the amount of people and capital already operating and doing business in it. Among them, the virtual real estate sector has already begun to take off. And it will continue to develop strongly in 2022.
A great example is Republic Realm, a company engaged in doing real estate business in the metaverse that sold 100 virtual residences for 15,000 dollars each. These same residences have been revalued and are being resold for 300,000 dollars each, according to the company’s founder in an interview with Cinco Días.
And Spain is not left out of this trend. Business Insider tells us about OVR, a metaverse in which hexagonal plots that include several square metres of land similar to that of the physical world are sold. So for example, the cathedral of La Almudena -the virtual one, of course- is owned by an individual.
The Sagrada Familia, locations of series such as the Osuna bullring –Game of Thrones– or Nuevos Ministerios –Money Heist– are also assets that are being speculated on.
So, if the real world doesn’t convince you, you can always buy a plot of land in the metaverse 😉. Joking aside, 2022 will see even more growth in this sector.
Investing in bricks and mortar in 2022
Outside the intangible world, investment in real estate has always been one of the safest investments to make.
In 2021, property sales and purchases in Spain showed very positive figures, with real estate investment growing by 33% compared to the previous year. In 2022, the upward trend is expected to continue as real estate investment in Spain will be boosted by the European funds that the country will receive.
The acquisition of housing for rental to third parties will be particularly active. According to the Bank of Spain, the return on rentals in 2021 has reached an average of 3.7%. Therefore, 2022 looks favorable for home purchases.
In an interview with El País, Manuel Romera, director of the Financial Sector at IE Business School, comments that buyers will continue to be favoured when applying for a mortgage loan because the Euribor remains negative. We tell you more about this.👇🏻
Euribor: how it will affect mortgages
The behaviour of the Euribor also has a lot of influence on real estate investment, especially for those who take out a variable-rate mortgage. It has remained negative for the last five years, which means that mortgage conditions have been favourable for buyers.
But how will it continue to evolve? According to predictions such as those of Bankinter and Romera himself, the Euribor will rise due to factors such as inflation in the Eurozone, although the rise is not expected to be too sharp.
However, it is also expected to rise considerably over the next 10 years, reaching 3% or 4%. Admittedly, predictions are not certainties, but it is important to be informed about the evolution of the Euribor if one of your New Year’s resolutions is to buy a home.
Housing for young people: more opportunities
2022 will increase the possibilities for young people to access their first home. As Business Insider España reports, the main obstacle young people face when buying a property is the down payment.
Since the financial crisis of 2008, financial institutions have covered their backs and the mortgages they grant do not exceed 80% of the purchase price in most cases. It is the remaining 20% that young people cannot afford.
But in recent months more and more banks have begun to offer mortgages with more favourable conditions for this segment of the population. Ibercaja and Banco Santander, for instance, are already offering 95% mortgages for people under 35, as long as they are solvent in terms of income or, in the case of Banco Santander, if there is a guarantor.
In some cases, it is also possible to extend the repayment period to up to 40 years. On the one hand, this is positive, as the monthly repayments are reduced. But by increasing the repayment time and the interest, the total payment ends up being higher.
Thus, 2022 could see a take-off in demand from young people for housing.
With all this in mind, if you are looking for a home where you can start a new chapter in your life, at Sonneil we offer exclusive homes in the most impressive areas of the coast. Would you like us to help you?