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Property investment funds are putting their Spanish deals on hold, expecting prices to fall in the next six months, at least according to one source.

Big investors are getting the jitters with interest rates and inflation on the rise, recession looming, and the war in Ukraine escalating with Russia’s failures, reports an article at Vozopuli, a Spanish news outlet.

“Everything will be cheaper in six months,” one investment fund manager is reported to have said.

Investment decisions are being put on hold for the time being. “It’s what happens with uncertainty,” says another fund manager quoted in the article. “Nobody wants to buy something that will be worth less in six months. The sensation we have is of a general sense of wait and see in the expectation of lower prices.”

Deals started falling through back in July as investors went into the summer preferring to wait until September before making decisions. Now that we are in September and the uncertainty has only increased as far as investors are concerned, explains the article.

The commercial sector is most affected but residential investors in new developments remain sanguine, we read. Despite a noticeable deceleration of sales with home buyers taking longer to decide, and shopping around more for finance, the demand for new homes in Spain still outstrips the supply, the article concludes.

Also in September the European Central Bank released a report envisaging a 9% fall in house prices across the Eurozone, and 15% fall in real estate investment over the next two years.