31 October 2017 – Solvia
According to data from the latest trend report issued by Solvia about the real estate market, we can expect to see a moderate increase in the volume of house sales in Spain over the next few years. The increase will also be accompanied by a moderate increase in prices. These forecasts establish a context of real estate recovery in the country.
Towards 560,000 transactions by 2020
Since the number of houses sold in Spain hit rock bottom back in 2013 – when around 300,000 transactions were recorded – the figures have risen by 50%, in just three years. In this way, around 450,000 house sales were recorded in 2016 and Solvia forecasts that this figure will increase by between 7% and 8% per annum over the next three years, to reach 564,000 house sales by 2020.
A key factor in this new real estate cycle is the significant weight of buyers looking to reposition themselves on the housing ladder – whose purchase decisions had been postponed during the years of economic recession – and also small-time investors, who are buying homes to rent them out, given the higher returns offered by the real estate sector compared to other investments. Demand from non-resident foreigners is also expected to continue to grow, driven by the record visitor figures that are being recorded in the tourist sector.
From 2020 onwards, Solvia forecasts that the volume of house sales will start to decrease, for three reasons: the natural demand from the population aged between 25 and 44 years will decline, as will the pent-up demand to buy a home; moreover, the rental culture will continue to grow in popularity amongst the new generations.
By autonomous region, in terms of the volume of transactions for every 1,000 inhabitants, the most dynamic regions will be the Balearic Islands and the Community of Valencia, primarily due to the foreign buyer effect. By contrast, if we look at absolute sales volumes, the most operations will be undertaken in Andalucía, Cataluña, the Community of Madrid and the Community of Valencia.
Original story: Solvia
Translation: Carmel Drake