03/04/2022
You’re probably all familiar with all the headlines floating around about how the inflation being out of control globally, the pandemic and the current situation in Eastern Europe all have an impact on the property market.
Whilst the occasional buyer waiting for the property market to crush still exists, all financial analysts are forecasting the prices to further increase in the next couple of years.
Recent financial reports show that a large percentage of the high and ultra high net worth individuals are looking to invest into properties overseas in order to offset the impact of the inflation.
Most of them are focusing on the off-plan and new build developments, with Costa del registering record figures as high as 1072 new build sales in the month of August 2021, which is still the highest figure reached since 2013.
The reasons are obvious, but here are a few of the main ones:
🔹 During a period of high inflation, prices rise across the board and whilst house prices are not immune to this, you are easily getting more for your money if you lock a price now for a home that will be ready in 2 years and as per current statistics will be worth 20%- 30% more
🔹Construction materials and labour are getting more and more expensive, with developers forecasting to impact the prices of new homes by up to 30% , which will surely have some sort of impact on the supply as well
🔹 The supply was already affected in the last 2 years due to lockdowns and minimal mobility and as any other market, Costa del Sol has seen a fall in inventory as well
🔹Simple maths, high demand and falling supply surely doesn’t make us expect a decrease in prices any time soon
🔹Last, but probably most important, interest rates are still lower than they have been for decades. Being able to lock in a fixed rate for your monthly mortgage is definitely boosting the purchasing power and whilst all prices are going up, your monthly payment will be consistent thanks to your fixed rate
Right now is the time to create your tomorrow, what are you waiting for?