The residential market is in good health in Spain. After revalorizing an average of 4.5% year-on-year, the price of housing remains 40% below maximum. Even in the main capitals.
Housing, both new and used, continues to gain ground lost during the housing crisis.
The “Tinsa IMIE General Index and Large Markets, December 2017” shows a general rise in the price of housing. The value of the residential park increased by 4.5% in 2017.
In this last ascent of the year, the big cities were protagonists next to the Mediterranean coast. After rising by 7.5 and 5.7% respectively.
They also climbed both archipelagos and metropolitan areas. Although it can be below 4%. While the rest of the municipalities were practically stagnant.
Demonstrating a double tendency. The undisputed leadership of the capitals, with cities such as Valencia or Malaga in clear rebound. And the recovery of the second residence, with the Mediterranean coast, the Balearic and Canary Islands, trading upwards.
El mercado residencial goza de buena salud en España. Tras revalorizarse una media del 4,5% interanual, el precio de la vivienda queda un 40% por debajo de máximos. Incluso en las principales capitales.
The price of housing increases the pace
With a revaluation of 4.5%, in interannual rate, the price of finished housing rises considerably more than a year ago. Practically three points above.
The biggest rebound is concentrated in the big cities with 7.5% more than the previous year. A segment that closely follows the Mediterranean coast, after rising by 5.7% year-on-year.
It also increases the price of housing on the islands and around the capitals. Although at half the pace of the capitals.
Specifically, 3.8% in the Balearic and Canary Islands. As well as 3.7% in metropolitan areas.
While the residential park distributed by the other municipalities is the only one that goes back. Falling its price 0.4% compared to the previous year.
Residential trend for 2018
Certifies the recovery, not only of the first home in the capitals but also of the second homes. Both in the Mediterranean and on the islands.
Something argued by Féliz Lores, from BBVA Research. According to the entity’s data, the sale of holiday homes to national clients has grown by 20% between January and September. While the average real estate market has done 17.8%.
In that sense, Jorge Ripoll (Tinsa) foresees new increases in the price of housing for 2018. Although more moderate, with an average increase of 5%.
Once again, the capitals will once again be real estate reference markets.
Going up prices in a smoother way. And increasing purchases between 10 and 15% per year.
Up to 550,000 operations per year. Everything will be gradual, since before wages should be normalized and consumer confidence increased. Some data that will transfer part of the rental demand to the purchase of housing. And that will increase the permissions of new work by 20%.
Prices with travel to continue growing
This last rise in the price of housing is important. But it still leaves a wide margin for profitability by investing in housing.
In fact, the current values ??still accumulate a fall of 38.6% from the historical maximum reached in 2007.
Among the areas closest to the boom prices are the Balearic and Canary Islands. Located 28% below maximums. While the small and medium municipalities accumulate a fall of 37.2% in the price of housing.
The capitals and large Spanish cities are 39.9% below the historical maximum of 2007.
While the areas with more travel to continue growing are the Mediterranean coast (-45.8%) and the metropolitan areas of cities (-42.7%).
Markets that could accommodate a good number of investors, national and international, as well as many residents. In addition to construction projects that right now lack ground finalist in the main Spanish cities.
