The revaluation of housing in 2017 has had a lot to do with the increase in potential customers. But also with the slow recovery of the construction activity. A situation that puts pressure on cities like Madrid, where the stock of available housing accumulates falls of over 40%.
The imbalance between demand and supply of new housing has had an important impact on residential stock in several Spanish cities. On the one hand, making available housing fall and on the other driving up the price of properties.
The last revaluation of the house registered by Tinsa has coincided with the periodic study published by TecniTasa. A document where attention is paid to the imbalances of the Administration. With direct consequences both in the levels of construction and in the extra cost of the new construction.
If we add to this the lack of large construction projects and the rapid depletion of the new home, we will find a common problem for half a dozen Spanish capitals. The fall in the stock of homes.
From Madrid to Valencia or Malaga have seen their real estate offer fall in recent years. Undoubtedly, a touch of attention for those administrations that are beginning to notice a fall in replacement housing.
New construction, increasingly scarce and expensive
While the finished house continues to rise, the obstacles to the new work begin to happen one after the other.
Not only because of the slow recovery of construction companies, but also because of the inefficiency of the Administration in facilitating permits.
The bureaucracy causes an increase that can reach 7,000 euros for each new home, according to TecniTasa. An additional cost that would not exist to process the works within a period not exceeding one and a half months.
However, there are various reasons that end up causing delays in processing times. A delay in obtaining licenses that, extended to an entire quarter, increases prices between 600 and 1,500 euros. And that, in the case of finishing nine months later, you can raise the final price of 3,000 to 7,000 euros.
Housing availability by capital
At the end of December, Idealista has prepared a comparative study of the housing stock used in Spain. Comparing the variation in the availability of the last three years.
Of all the provincial capitals, the vast majority have increased the available stock. While a total of twelve capitals have lost stock between December 2014 and December 2017.
The biggest drop was in Madrid (-42.9%). In front of other capitals such as Pamplona (-32.3%), San Sebastián (-24.7%), Bilbao (-19.3%), Girona (-16.8%) and Vitoria (-13.6%) ).
Likewise, cities such as Seville (-9%), Valladolid (-8.1%) and Valencia (-5.9%) have also fallen between ten and five cities. While, below 5%, we find Malaga (-4.3%), Las Palmas (-4.2%) or Toledo (-0.6%).
Cities that contrast with others where housing available did nothing but grow, such as Pontevedra (+ 87.7%), Cuenca (+ 78.5%), Oviedo (+ 74.5%) or Lleida (+ 60.6%) ). Where we also find capitals such as Barcelona (+ 10%) or Palma (+ 6.8%).
Barcelona and Valencia, two scenarios in new construction
In addition to having two of the most active markets, these two Mediterranean capitals live different situations as far as new housing is concerned.
The Catalan city, slowing its growth by 13%. According to the data of the College of Architects of Barcelona. After having accumulated a rebound of 128% between 2013 and 2016.
While the Valencian capital, increasing by 88% the levels of construction activity during the last year. And adding 2,483 new homes, according to the City of Valencia.
Two different scenarios in two cities with little in common.
The case of housing available in Madrid
The city is the clearest example of reduction in the supply of available housing, according to Idealista. After falling 42.9% of the available housing stock, from 30,027 units (December 2013) to 17,143 units (December 2017).
This fall has been especially intense in some of its historic districts. Like Arganzuela (-59.8%), Chamberí (-53.2%) or Retirement (-53%).
Although they have also reduced their stock in an important way the districts of Salamanca (-49%), Fuencarral (-47.2%) or Ciudad Lineal (-46.3%). As well as Carabanchel (-45%), Tetuán (-43.4%) and Chamartín (-43.3%).
No district has been saved from the fall. Demonstrating the interest that exists for the purchase of housing in Madrid
. Not only in new construction, as pointed out by Sociedad de Tasación in a rise of 6.8%, but also in second-hand housing.
A stock that as it falls returns to rise in price. A problem that the Administration does not seem to want to remedy.
