The housing sector is showing incipent symptoms of recovery after five and half year, informs the report released by Bankinter Analysis Department on the real estate situation and perspectives on the Spanish market.
The document concludes that the demand will not show increase different than registered in the last decade, the forecasts are that the development activity still has to go through a poor period by 2016, and the prices of the badly situated houses will keep falling down.
Analysts estimate the number of not sold houses on the stock market at 740.000, and out of this number Bankinter determines 150.000 as unmarketable. The houses constructed during the real estate boom are often located far away from the large cities, in the coastal zones with no touristic value and in ´ghost towns´ which lack of basic services.
For Bankinter, the price stability, return of the institutional investors´interest in Spain and a shortage of offers in big cities will cause the prices to rebound in various places of the country in 2014 and more widely in 2015, (…). That is why the Spanish market will become an interesting target for investors, (…) especially the foreign ones.
Bankinter adds that even though the prices in Madrid and Barcelona stopped dipping down, the prices from the golden period before the real estate bubble burst are not coming back.
(…) “Definitely, the real estate sector is right now at a turning point and it will become an attractive investment object as soon as in 2014, always taking into account the fact that the real estate investment has to be observed in the spectrum of 5 -10 years.”
The main factor pushing the price drop-off are the still elevated prices, the foreclosed assets price discounts and a lower tendency to purchase houses.
First Interannual Rises in 2015
It can take a long time for prices to recover and the year 2014 will witness small adjustments to the bottom line, allegedly to end the descent up by the end of the year. In 2015 higher demand rates will push the first tapers out in the last 7 years (…).
Source: El Economista