15 June 2018 – Eje Prime
Gesvalt predicts that house prices will continue to rise this year. According to Sandra Daza, the Director General of the company, the price of residential properties in Spain will grow by between 5% and 7% this year in the main cities across the country. “We are not laying the foundations for a new real estate bubble, sales are going to continue to grow and prices will maintain their upward trend”, explained the executive in the framework of Inmonext.
The surveyor explained that, in 2017, “more than half a million homes were sold, the economy grew by more than the European average, minimum interest rates continued to encourage the diversification of investment portfolios and last year, €14 billion was invested in property, up by 45% compared to a year earlier”. “We can say, without fear of being wrong, that Spain is an interesting market for investment”, she said at the event organised by Idealista.
Although she acknowledged that the lack of political stability is affecting the sector, she also argued that the appetite from investors for domestic assets is still very high.
In some sectors, such as offices, there is a lack of high-quality products, whilst in other sectors, such as shopping centres and logistics, there are opportunities. She regards the latter as “the sweetheart of the market”.
Daza, who also agrees with other industry experts on the need for the Administration to put more land on the market, also sees “clear potential” for alternative assets (student halls of residence, nursing homes), whose main features are their high profitability and support from demographic factors.
Original story: Eje Prime
Translation: Carmel Drake