BBVA: The Return Of Credit Strengthens The RE Recovery
6 July 2015 – El Mundo
BBVA Research, the financial institution’s research service, says that the return of credit to the market is strengthening the recovery of the real estate sector. According to the bank’s “Real Estate Flash” report for June, this increase in funding caused the volume of sales to increase by 3.1% during the first four months of 2015, with respect to the same period in 2014.
Sources at BBVA highlight that “the reduction in rates and the greater liquidity in the financial system is favouring the mortgage market”. The data reveals that the number of mortgages signed before notaries during the first four months of the year increased by 21.9%.
Meanwhile, the entity says that the increase in demand “is favouring the recovery of construction activity and is contributing to the stabilisation of prices above their minimum levels”.
The recovery in the sector is also reflected in the increase in the number of new housing starts, which have increased by 30% compared with 2014.
According to BBVA, this recovery is also been observed in the market for land. The number of land-related transactions increased by 4.4% to reach almost 3,500 deals, according to data released by the Ministry of Development, and referenced in the bank’s report.
In terms of prices, the latest general statistical data confirms that they have stabilised, says BBVA. However, it warns that “heterogeneity continues to characterise the evolution of house prices across the different regions”.
In this regard, the financial institution adds that, except for the “volatile behaviour” associated with the uncertainty in the sector, “it expects house prices to continue to move away from their minimum levels in all regions”.
Original story: El Mundo
Translation: Carmel Drake