Madrid Expects To Sell Out Its Stock Of New Housing In 10 Months And Predicts A Rise In Prices

9 February 2016 – ABC

The capital has given out 82.5% of its offer in two years and there are only 1,710 new units put up for sale.

In Madrid capital there are only 448 new homes left for sale out of the 2.558 units registered in the list drafted in 2014 by “Sociedad de Tasación” (Valuation Company). A figure which has warned the property sector on the stock pace of the absortion, which implies that 82% of this offering has been sold. In addition, in the capital 1,710 new units put up for sale in the last two years remain for sale. The generic balance is 2,158 homes. All of this brings a stock net reduction in Madrid capital of 15,6%.

This comes from the report released from this valuation company, which reflects that this current extends to the municipalities of the Community of Madrid with more than 50,000 inhabitants. Thus, the CEO of “Sociedad de Tasación”, Juan Fernández-Aceytuno, warns that the supply of new housing in the region could be sold out in 10 months. “In the case of Madrid capital it would be 9 months.” A situation that would lead to a “price spike scenario,” according to study “List of New Housing in Madrid and Madrid Capital 2016″ prepared by the valuation company.

Out of the 8,898 new housing units on sale in 2014, there are currently 1,911, representing a stock reduction of 78.5 percent in two years. To this remnant, the 3,563 new units in stock which have been detected from 2014 to now are added, resulting in a current balance of 5,474 homes and a net reduction of 38.5 percent over the 2014 List.

“In this context, if new units are not put up for sale, we could find ourselves in a scenario of price spike in this segment of the market, since there is not sufficient supply to meet demand», Fernández-Aceytuno says.

Original story: ABC (by Adrián Delgado)

Translation: Aura Ree

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