THE SPANISH HOUSING SECTOR WILL CONTINUE ON ITS ROAD TO RECOVERY IN 2017
In the first-half of 2016, the buying and selling of properties, as well as the construction of new ones, increased in relation to the same period the year before.
The good performance of the housing sector is, to a certain extent, due to the positive increase demonstrated by the conclusive residential applications among which include: the increase in employment, a higher supply of credit and lower interest rates, a larger scale on internationaldemand, and lastly, the probability of increasing the value of housing.
In this view, the momentum of real-estate transactions in a record-breaking framework continues to gradually benefit the re-evaluation of housing prices, as well as the initial increase of new residential building projects.
MODERATION IN THE INCREASE OF HOUSING INVESTMENTS IN 2017
Forecasts point towards a slight moderation in the increase in purchasing and investments made in the housing sector in 2017, as is estimated for the economy as a whole. Despite this, moderation is likely to be in small measure given the importance that expectations in this sector hold and, for the time being, the current predictions for the housing market are positive as presented by banks such as BBVA, Caixa Bank and Bankinter.
On the other hand, the Professional Association of Real Estate Experts (APEI) predicts that the upward trend in prices and increase in sales in the real-estate market will continue in 2017, with a “slight” increase in housing value as well as the magnitude of transactions, or “even more sales” to the detriment of the rental offers. In turn, they rule out the creation of another real-estate bubble.
THE IMPROVEMENT IN THE REAL-ESTATE SECTOR IN 2017 SHOULD BE DOWN TO THE POSITIVE NATURE OF HOUSING SALES IN 2016
As such, the prediction that the housing sector will improve in 2017 is mainly due to the positive figures of housing sales obtained so far in 2016, as well as the exponential growth of foreign buyers and investors into Spain.
The sale of house increased by 11.8% in the past few months of the current year, according to the Centre for Statistical Information of Notaries (CIEN). In this manner, residential transactions demonstrate a clear disposition for growth.
In the face of lack of new housing, the real-estate sector is moving back to the second-hand market. In this direction, statistics dictate that the purchase of second-hand homes show a higher movement. Data gathered by the Ministry of Development point out that purchase of new homes declined by 5.7% whilst, at the same time, the sale of second-hand homes grew by a little over 21% year-on-year.