After hitting 10.8% in July, the highest level since 1984, inflation reached a high of 10.5% in August. The general rise in prices and the consequent depreciation of the currency are particularly affecting the present moment. residential investmentWhat Shelter value for a higher return on savings with low risk.
Pushed by rising energy and food prices and fueled by the war in Ukraine, the increase in prices is already noticeable in all product categoriesAccording to the National Institute of Statistics (INE), and it’s already a huge setback for most families.
In July, inflation rose to a historic 10.8% as a result of higher prices for leisure and tourism products. Although the rate fell three-tenths in August, the rise in prices is already country’s biggest economic problemAlong with forecasts of economic recession in the last quarter of 2022 and the first quarter of 2023.
in this content real estate investment emerges as an alternative As a tool for the savers and to fight inflation. If the saved money remains inactive in the bank account, it loses value, while the deposited money living space It is revalued as property does.
Housing is also considered a refuge for investors, especially as a result of the covid pandemic. It is a profitable and safe investment: It offers higher returns than other financial products that require more risk to get any return.
revaluation capacity
Even in the worst times for the real estate industry after the 2008 mortgage crisisshowed home revaluation capacity. It is also an essential and elastic good, allowing demand to be more protected from rising prices. As stated in the latest report on Flats.com sale prices, second-hand housing in Spain reached an average price in August. 1,951 euros per square meterCompared to the same month of 2021, it increased by 5.26%.
According to Iñaki Unsain, president of the Spanish Association of Personal Shoppers of Real Estate (AEPSI), “some investors with liquidity in financial assets” are already choosing this alternative for their savings: “They prefer to buy and rent a house, so that your money does not lose value due to inflation.”
The possibilities that real estate offers as a haven value against inflation are especially true in urban settlements, areas with urban development forecasts and good communication.
Rental Facilities
One of the advantages of housing as an investment asset is when revalued. allows you to earn a return on it by leasing. According to Piso.com data, the gross rental income in Spain in the second quarter of the year is 6.36%; 0.17% less than the first quarter of 2022, but above 5%, which is considered an optimal investment.
by regionCastilla-La Mancha was the autonomous community with the highest profitability, 7.76%, followed by Extremadura (7.76%), Aragón (7.15%) and Canarias (6.6%). At the opposite extreme with the lowest profitability are the Balearic Islands (4.19%), the Basque Country (4.38%), Castilla y León (4.84%) and Madrid (4.98%).
Future projections for leasing are also positive, as an investment impacted by greater challenges to purchase towards the end of 2022. The increase in the cost of mortgages and the impact of inflation on the family economy, The contraction in the number of real estate transactions in recent months, to which the decline in household savings caused by inflation is added.
As a result, people who cannot afford to buy a home, either by delaying the purchase decision or choosing to leasethis would mean an increase in demand and a possible increase in rental prices.