Real Estate market trends for new construction in 2023
New year, new trends. Based on everything that has happened during 2022 in the real estate market, we can create a view of what is to come during 2023 in this sector.
The purchase and sale operations of the real estate market are booming. Investment in housing, the search, and acquisition of second homes, or foreign buyers of new construction, are some of the trends this year.
Against the tide, in the face of skyrocketing inflation and a rise in interest rates, the real estate market jumps over these fronts, reduces the gap and presents a more positive outlook for the coming months of the year. Read on to find out about the new paths in the real estate sector and the main trends in the new construction market on Costa del Sol. Let's get started!
The 5 real estate trends for 2023
With the beginning of inflation stabilization, interest rates are expected to drop to 2.5% in the medium term. This forecast assumes an optimistic scenario for the real estate market during 2023, with a parallel stabilization of property prices.
01 Decrease in rental supply
According to data from the sector, resulting from the most current macroeconomic data, a drop in demand for home purchases is expected in the coming months, which will benefit the rental market.
The increase in the number of Spaniards who are renting may collide with the shortage of housing supply, a demand that exceeds the supply, and with it, an increase in rental prices.
In addition, this new market trend is pushing up the built-to-rent formula. This may turn around real estate projects in 2023, stabilizing rental prices and making them more accessible to future tenants.
02 Challenges in the new construction
The launch of new construction projects continues to rise as a result of a reduced supply of second-hand housing and an increase in demand for investment in properties intended to obtain economic returns, or simply enjoy them as a second residence.
Even so, the macroeconomic situation of the country, supported by a rise in inflation and with it, an increase in the cost of raw materials and interest rates, the projection of new construction is one of the main challenges that the sector will have to face during this year.
03 Sustainability in housing
Housing does not leave sustainability behind. Our society is increasingly educated and aware of environmental protection, a concern that is transferred to the demand of certain requirements by the construction of new buildings.
This trend towards sustainable housing means that the market is adapting to social change, not only by those seeking housing but also by investors who are committed to carrying out sustainable architectural projects.
Sustainability in the sector is based on the design of projects that integrate construction systems with sustainable materials and have energy efficiency.
04 Technology and big data applied to the real estate sector
It is less and less surprising that the market requests the possibility of making digital visits to real estate. This demand for the digitization of the sector has led to the implementation of technologies such as big data for the storage and analysis of data that allow studies to be carried out with a higher rate of reliability, in addition to the fact that information allows streamlining administrative tasks and enhancing opportunities from the market.
In addition, there is expected to be a rise in demand for smart houses, and buildings that integrate technology. Implementation of innovations that, in addition to facilitating the daily life of its inhabitants, adapt to a friendly and sustainable lifestyle with the environment.
05 Stabilization of prices and interest rates
Housing has become a safe value in which to invest, which is why it is expected that the price per square meter will experience an increase over the next few years.
A positive value of housing during 2022, stands at an increase of 1.5% and 2.5% year-on-year. However, industry analysts say that real estate market prices will stabilize along with inflation, a positive outlook that is expected to happen when Euribor begins to adjust after touching the 3% barrier.
The real estate sector on the Costa del Sol
Every year, in Prime Invest we carry out our market study of the real estate sector, which allows us to have a clear and panoramic vision within the sector on Costa del Sol. What can we expect for 2023, according to the figures at the closing of the fourth quarter of 2022? Let us tell you the key points:
- Real estate sales rates continue to be positive. At the beginning of the year, there were 14,600 units projected, ending with 14,5000 units.
- The total housing stock has remained at around 2,600 units throughout the year, which means that the market is absorbing all the launches. From the decrease in the total number of developments for sale, it can be deduced that there have been more sold-out developments than new launches.
- A gradual increase in the average sale price of the entire Costa del Sol, increasing up to 20% in €/m2 in villas, 9% in apartments and 3% in townhouses.
- Costa del Sol continues to be the point of demand for housing for foreign buyers. A segment of applicants who, for the most part, do not require financing for the acquisition of real estate.
- Estepona leads the rest of the cities on the Costa del Sol, standing out for its concentration of new construction projects, a total of 65 as of December 2022.
Do you have doubts about the real estate sector this 2023? Don’t worry, because our team of consultants is available to solve your doubts and make it possible for your investment in housing to always be the most profitable for you.