Completed 2017, Spain adds four consecutive years of recovery in real estate investment. In spite of the Catalan uncertainty and adding to the good prospects of the market the return of construction.
The real estate sector is on track to add four consecutive years on the path of recovery. Having the possibility of recording its highest level of growth in 2018.
The brick shines again. Most experts agree that this new year will be marked by the recovery of a key sector for the Spanish economy. The new real estate investment is supported by the sanitation of a large part of the properties in a large part of the territory.
A phenomenon that Madrid and Barcelona lead, and which little by little are added from the Balearic Islands to the Valencian Community.
Even so, we must closely monitor the evolution of housing in Catalonia. A community that in the last quarter of 2017 has left the leading group in real estate revaluation.
While the new work adds to the large spikes that seemed reserved to the used housing. Registering the highest price increase of the last decade.
Great year for real estate investment
After a period of difficulties for the real estate sector, 2018 may be the great year of recovery. The real estate market is at a good time, exceeding 10 billion euros of real estate investment.
The real estate market is at a good time, exceeding 10 billion euros of real estate investment. According to JLL data. This volume of business will have a huge impact on the residential park, which will see an 18% increase in the number of purchases. Overcoming the 550,000 transactions per year, according to Servihabitat.
The recovery will reach all the CCAA, although at very different rates. There are great differences, not only between communities but also within the same region.
There is no doubt that the Community of Madrid, both archipelagos (Balearic and Canary Islands) and the Mediterranean coast will be the main engines of the market. They defend from the BBVA Research Department. Areas closely linked to tourism, where the demand for housing by foreigners has increased from 12% (2012) to 17% (2017). With exceptional cases, such as Alicante, where 50% is exceeded.
Housing in tune with the economy
In this last stage, the recovery of the real estate market has been marked by solvency. Both on the part of wealthy buyers, as well as greater access to bank credit and interest in promoting new work by important US funds.
On the two major investment focuses, Madrid and Barcelona, ??JLL reminds that the opportunities to invest are increasingly scarce. Therefore, other secondary capitals will take over with good opportunities. Able to offer greater profitability in exchange for taking on more risk.
Even so, Spain continues to stand out against other countries in its environment. Precisely because of that ability to offer profitable opportunities at an affordable price. Reflect from CBRE.
The positive economic forecast for the period 2017-19 allows our country to continue to earn the trust of investors. And although the price of housing has risen an average of 4% in the last year, there are markets that have multiplied by four and five times that percentage.
The highlights, Barcelona (+ 14.8 %%) and Madrid (+ 17.1%). Two cities that lead profitability in the last year. Allowing to revalue the investment in a short time.
The Catalan ‘affair’ and Barcelona’s housing
The last of 2017 has not been good for the real estate market in Barcelona. The political situation has had a direct impact on the price of housing during the last quarter, as shown in the report ‘Tinsa IMIE. Local Markets 4th Trimester. ‘
A quarter-on-quarter drop of 1.7% in Barcelona, ??which contrasts with the 4.5% rise in the Spanish capital. And that after restraining the investors moves the uncertainty to the rest of potential buyers.
The cooling of the housing market in Barcelona has not slowed down the rise in prices in 2017. The floors were flattened by 14.7%. Practically twice as much as a year before. Up to 3,129 euros per square meter. Overcoming both San Sebastian (€ 3,231) and Madrid (€ 2,601).
A trend that can be repeated in 2018, since prices are still 29.5% below the historical maximum of 2007. And that, if political uncertainty continues, there could be a fall in prices that we already see in Girona (- 0.9% year-on-year) or in Lleida (-2.4%).
The new construction joins the bull cycle
The limitation of the stock in the main cities is driving the real estate promotion. This is defended by the report of ‘Trends in the Real Estate Sector’ of the Valuation Company.
According to their data, the price of new housing has grown by 5% compared to last year. Reaching 2,227 euros per square meter. The largest increase of the last decade that brings the average effort for home purchases to 7.6 years of full salary.
This trend has been concentrated in the second half of the year. Period in which progressed by 3.3% (July-December) compared to the previous 1.7% (January-June).
Being, of course, Barcelona the city with the most expensive new housing (€ 3,865 / m2). And Catalonia the most outstanding community (€ 3,452 / m2).
But also the only one where the index of real estate confidence falls. Now located at 56.2 points. The most immediate result of a real political crisis.
