11 July 2018 – Eje Prime
All of the indicators are remaining positive in the Spanish residential sector. At least, that is the conclusion of the market trend report that Solvia has prepared. Banco Sabadell’s servicer forecasts a 6.1% increase in average house prices and a 7.2% increase in the number of house sales during 2018.
The report Solvia Market View indicates that, since 2013, house sale operations between individuals have grown by 140%. That figure exemplifies the dynamism of transactions in a market that is very much in recovery.
Sabadell’s servicer highlights that the residential real estate brokerage business generates turnover of €1.2 billion. That sector, which is still “very fragmented, will tend towards a concentration into large platforms with a high number of available homes”, says Solvia.
The report forecasts that the volume of transactions will exceed 570,000 this year, 74% of which will involve operations between individuals, “a trend that will continue over the coming years”, according to the servicer.
Prices: 10% higher in Cataluña
In terms of average prices, some areas of the country are expected to grow significantly. Cataluña looks set to see house prices rise by 10.5%, whilst in Madrid, that percentage is forecast to amount to 7.1%. Outside of the large capitals, the Balearic and Canary Islands are forecast to register price increases of 8.9% this year, according to the report from Solvia.
Meanwhile, Andalucía, the Community of Valencia and Murcia are expected to see price rises of 5.4%, somewhat below the national average, of 6.1%.
Original story: Eje Prime
Translation: Carmel Drake