Overview
As geopolitical tensions in Europe arise, causing an energy crisis and a generalized price inflation, the growth expectations for the Spanish economy have been reduced. Figures from the first half of 2022 reveal that GDP will grow by 4.1% in 2022, reaching pre-pandemic levels, although forecasts expect GDP to consolidate above pre-pandemic levels by H2 2023.
The unemployment rate will close the year at around 13% (12.48% as of H1 2022), the best record since 2008.
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During H1 2022, the Spanish residential sector continued its upward trend, with transactions increasing +20% YoY. The residential segment has been established as an appealing option to investors, with +328k transactions in H1 2022, levels not seen since 2008. However, the increase in mortgage rates is expected to slow down transactions’ growth.
The retail sector demonstrated an excellent recovery from the pandemic, as the sector led the real estate investment in H1 2022 with a total volume of €2.9bn, a +196% YoY increase.
Additionally, the hospitality segment is consolidating its position as a haven destination for investors. During H1 22 investments increased by 35% compared to H1 21, while in Europe investment decreased by 15% on average during the same period. In this report, we have analyzed the evolution of the principal real estate sectors during the first half of 2022.
