The price of housing in 2019 will continue to rise, following the trend of recent years. In this article we take a chronological tour and formulate a forecast of the price of the house in 2019, both for rent and for purchase . Finally, we suggest a partner to invest in Real Estate.
How much has the house price gone up?
As of 2014, the price of housing began to recover after a five-year decline and, in 2019, the pre-crisis levels have already recovered in most of the large cities. This shows that, in the long term, investments in real estate remain a future value.
Except for very localized cases and motivated by endogenous problems of the property or by urban decisions, the truth is that investment in housing is a safe value. The real estate market is a good opportunity, either to buy or to rent houses.
The projection of the real estate market in the coming years is upward, at least until 2020. In 2017 the average price increased by 4%, in 2018 by 4.5% and it is expected to continue rising in 2019 and 2020. It should be noted that These valuations are used for the purchase market but also for the rental market.
The real estate market in 2019
The forecast for the real estate market in the coming years is positive for rent and purchase. However, to have the best options, it is better to study the different factors that influence and, if possible, have professional advice.
There are several factors that influence the price of housing , taking as a reference the operation of the law of supply and demand:
1. The measurements of the property because, as a general principle, the larger it is, the higher its valuation. We must not forget that the main measure of the price of real estate is the square meter. You also have to take into account if you have an outdoor garden, parking or other common services. In addition, it should be noted that single-family houses are priced better than flats.
2. The year of construction of the house, as well as the conditions of the land. Although each home is different, it is true that a new property has much less chance of having to be renovated than a used one. In any case, it would also be convenient to take into account the use of the home and this is something recurrent when the properties are rented.
3. The location of the property , essential to determine the value. Urban properties are more valued than rustic ones and, especially, in provincial capitals, large cities or areas with a large tourist influx. In fact, CA and Barcelona are two of the places where the price has risen the most.
4. The general economic situation. The Spanish economy has a particularity with respect to those of central and northern Europe, and that is that it is mainly focused on tourism and construction. Any problem in the economic situation causes prices in Spain to fluctuate easily.
5. Urban legislation. Planning is a municipal decision, although validated by the corresponding Autonomous Community government. It is possible that restrictive urban legislation makes it difficult to build and, if that happens, prices will tend to increase. As a general principle, the higher the availability of land, the lower the price.
6. The legal situation of the property. This point is critical and should be studied carefully. All homes must have a certificate of habitability, energy certificate and not be affected by the planning of the municipality. With some shortcomings, real estate is offered at an exceptionally low price, but the risks are many.
However, we insist that the existence or not of other properties for sale or rent will be essential to determine the price of the home.
What is the forecast for house prices in 2019?
If we wonder what will happen to the price of housing in 2019, it should be noted that it will most likely continue its upward path. The forecast is that, in Spain as a whole, the average price will increase by 3.5%. There will also be an increase in 2020, although of 3%, so this is a good time to invest in housing .
We can affirm that 2019 is going to be a good year for home purchases because the forecast is that, in both cases, it will continue to rise. The evolution of the price of the house will be positive.
In any case, at the moment we cannot indicate that there are symptoms of saturation in the big cities and a factor that is weighing heavily is that of purchases by foreigners . They have gone from representing only 4.2% of the purchasing market in 2009 to today being more than 13% of the total.
In short, the price of housing in 2019 will continue to increase and real estate opportunities will continue to be interesting, especially in capitals and tourist areas. A person who is interested in investing in Real Estate can count on the help of proven professionals such as those at Fasty Project Loans. We take care of generating real estate investment opportunities and defend the interests of our clients.