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Housing triumphs as a safe haven in the face of inflation

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The purchase of a house as an investment is the second most important reason for buying, only behind the need to live in a larger property.

Housing offers a yield of 10%, a much higher percentage than 10-year government bonds (2.6%) and deposits (0.4%), according to the Bank of Spain.

The purchase of housing as an investment is consolidating its position as one of the main reasons for buying a house in Spain in a context marked by rising inflation. Specifically, it now represents the second main reason for buying a home, behind only (barely seven tenths of a point behind) the need to live in a larger home, cited by 15.9% of those interviewed.

15.2% of those surveyed in June 2022 intend to buy a new home as an investment. A trend that has grown by nearly three points in the last six months. In December 2021, the percentage of respondents willing to invest their money in the purchase of a home stood at 12.4% – in June 2021, at 12%.

This study, based on nearly 3,000 interviews with residents in Spain aged 25 to 65, aims to find out what people think about the residential market in order to provide them with a better response to their needs.

Geopolitical and economic uncertainty

The favourable motivation to buy housing as an investment comes in an environment of geopolitical and economic uncertainty and with the savings of Spanish families at historic highs of close to one trillion euros, 5.64% more than a year ago, according to the latest report from the Bank of Spain. The monetary regulator also reports that the profitability of housing (rental yield plus price variation) amounts to 10%.

This economic situation has positioned the real estate sector, and housing in particular, as a safe haven and a very attractive and safe investment in the face of the generalised rise in prices. The aforementioned 10% yield on housing far exceeds that currently offered by other financial products such as 10-year government bonds, which stands at 2.6%, and the yield on deposits, which barely give 0.4%, according to the Bank of Spain.

Behind this motivation to buy a house as an investment would undoubtedly be the idea that up to 81% of those surveyed in the study believe that the price of housing will continue to rise over the next year, 10 percentage points more than six months ago (71.3%). Only 17% believe that prices will remain the same and 2% say they will fall.

About The Author
Israel Huertas Salazar

Inmobiliaria en Torrox. Ofrezco un trato personalizado y una contrastada experiencia como intermediario en la compraventa de inmuebles de todo tipo, oportunidades y grandes inversiones inmobiliarias, en diversas ubicaciones, tanto en Torrox, como Nerja, Frigiliana, Torre del Mar… y gran parte del territorio andaluz. Como broker inmobiliario, colaboro en red con todas las inmobiliarias y empresas promotoras y puedo conseguir la propiedad de su interés.