5 September 2016 – El País
House prices have not bottomed out yet and will continue their path of gradual growth over the next few months, which will encourage house purchases, above all from people looking to reposition themselves in the market or invest. Nevertheless, that will not avoid the least active markets from continuing to show progress in terms of house prices. Geographical heterogeneity will continue to be present in the Spanish real estate market. Those were the conclulsions of the latest Real Estate Observatory in Spain report, prepared by BBVA Research, the financial institution’s research service.
Following a positive balance during the first half of the year, we expect the residential sector to continue to grow during the second half of 2016, underpinned by favourable financial conditions and the increase in foreign tourism, which is forecast to hit a new record this year.
However, the bank indicates that the economic moderation that is forecast to take place over the next few months will result in a smaller increase in house sales than that recorded during the first half of the year. Moreover, the uncertainty in terms of political-economic decisions may be reflected in demand to some extent.
Meanwhile, real estate activity will continue to build on the growth in demand and in the gradual absorption of the oversupply of housing, which points to significant growth by year end, although from relatively low levels.
That is also being demonstrated by the strong evolution of transactions involving urban land: according to data from the General Council of Notaries, the surface area of land sold during the second quarter of the year grew by 81.5% YoY, the highest increase in recent times.
Original story: El País (by S.L.L)
Translation: Carmel Drake