6/02/2014 – Expansion
Main challenges faced by the Spanish real estate sector nowadays are: getting rid of the accumulated stock, restoring trust of both domestic and foreign investors, improving the rental market offer and bringing back value to the land. (…)
After the awarded dwellings avalanche, originating from unpaid mortgages and debt swaps, financial institutions, including Sareb, sought ways to manage the assets. (…)
Antonio Alarcón from Banco Sabadell claims that “last summer the classical investor profile buying diverse dwellings within the same district reappeared. Thanks to them the housing stock may be reduced and a new development stage set off. The stock is shrinking, especially in Madrid and on the coast”.
(…) Currently, it is estimated that the market holds about 750.000 unmarketable houses in various development stages. Unfortunately, they are not bound to be sold out in short term. (…)
“The artificial price adjustment fueled by banks now gets on the right track as international investors arrive with their money” – adds José García Cedrún from Drago Capital.
“We believe the prices reached rock bottom level. Possibly in 2014 we will observe a 4-5% adjustment, but after that the true evolution will come”, Alarcón says. (…)
Last year, the President introduced a plan facilitating property purchase to foreigners. The bonus for acquiring a house in Spain was a residence certificate. In fact, the legal security strategy worked (…), as the 2013 sales creeping slowly up prove.
“Development of great deal of land must be given up and intended instead for other sort of use. There is plenty of land with ´developable´ label and its transformation is costly. (…) The approved projects shall be examined” – claims Jesús Armendia.
Original article: Expansión
Translation: AURA REE