29/07/2014 – Expansion
The slump in housing prices observed in Spain over the past year could end up in 2015. Reaching the adjustment bottom will be triggered by an improvement in economic circumstances and huge contribution of foreign investors, Standard&Poor´s rating agency portends.
Real estate revival will be limited by excessive volume of unsold stock and a decrease in population. These two factors will seriously threaten the future of the Spanish real estate market over the next decade.
The New York-based financial services firm foresees a 2% fall in home values in Spain throughout 2o14 (to compare, they depreciated by 4.6% in 2013) and will hit the bottom at the end of the next year. After stabilization period, the prices will start to increase by 2% in 2016.
What is more, the report by Standard&Poor´s highligths the economic improvement advances “faster than expected“, enhancing more rapid decline in unemployment rate. The firm tells it will post 25.2% at the end of 2014 and ever since will shrink from 24% in 2015 to 22% in 2016.
In fact, the rating agency raised its predictions for Spain to 1.3% for this and to 1.8% for the two following years. This is more than an average in the euro-zone.
Original article: Expansión
Translation: AURA REE