3 March 2015 – El Economista
The positive outlook for economic growth, better employment figures and favourable financing conditions will drive further increases in house sales in 2015, which will be accompanied by a “moderate” increase in prices and a further increase in construction activity.
That is according to the latest “Real Estate in Spain – Flash Report”, prepared by the Research Department at BBVA, which also states that “2014 could be classified as the year in which the recovery of the real estate sector began”.
The entity points out that, according to the General Council of Notaries (Consejo General del Notariado), demand for properties showed signs of recovery month after month during 2014, to close the year with 364,000 homes sold, up 19.1% compared with 2013. “That was the first increase since 2007 and it reflects the greater level of activity in the mortgage market”, says BBVA.
At the same time, data from the Ministry of Development shows that there was a 0.5% increase in house prices last year, again, the first increase since the start of the crisis.
This recovery in the key real estate parameters led to a 1.7% increase in the number of construction permits for new homes in 2014, which the financial institution notes “breaks the trend of seven consecutive years of decreases and makes 2014 the turning point in terms of construction activity”.
The report forecasts that this positive trend will really take hold in 2015. BBVA Research expects the Spanish economy to grow by 2.7% this year, with the creation of around half a million jobs and relatively stable interest rates.
“All of these factors indicate that there will be a further increase in house sales and that prices and construction activity will respond with further growth”, says the bank.
Original story: El Economista
Translation: Carmel Drake