19/09/2014 – Expansion
Credit rating agency Fitch looks at the future of the Spanish residential market more optimistically. In its latest update about the sector, the firm‘s analysts assure ‘there are crystal clear signs that the resi market in Spain has hit the bottom‘ and ‘it is showing traces of stabilization‘.
The report states there exists a ‘possibility of a single-digit rise in prices in the upcoming quarters‘. Meaning that dwellings may go up, though not much. In fact, Fitch indicates the resi properties values graphs ‘have been smoothing over the past four quarters‘.
Moreover, the agency maintains that pricing gaps in different regions start to narrow, albeit the market in some areas will perform better than in the other.
Fitch does not expect any ‘abrupt jump as the lack of adjustment in laboral and property markets are still structural and the correction will take time and effort‘.
On the other hand, the agency estimates that foreclosed properties depreciated by 70% over their first valuations.
The Minister of Economic Affairs, Luis de Guindos, said that construction of homes improved and he was convinced about the return of economic growth. In fact, in the second quarter of the year, contribution of this sector to the national GDP showed first positive result since the beginning of the recession. Moreover, during that period of time, 37.000 people found a job in construction.
Mr. De Guindos believes the policy of the Government will leverage this battered sector up.
Original article: Expansión (by Juanma Lamet)
Translation: AURA REE