27/05/2014 – Bloomberg
Spanish property market is showing more and more clear signs of recovery, yet not confirmed by housing prices whose slump seems to be inclining towards stability.
One of the investors who has lastly acquired a house in downtown Madrid justifies his decision by considering the present economic circumstances “the right time as there is still chance to negotiate the prices”.
Jesus Castillo from Natixis portends the prices to fall 4% this year and an additional 2% in 2015. Also, taking the data from the General Council of Notaries saying the purchase shot up 45% from a year before, Juan Villen from Idealista.com gives a reason for the phenomenon “now the demand got unchained due to bottomed-out prices and improvement in the economy”.
In southern-eastern Valencia, possessing the largest volume of unfinished stock which was left abandoned when the recession hit, many construction companies are asked to finish the developments by Sareb. The region hosts almost a fifth part of the 1 million vacant homes in Spain.
According to a Murcia-based builder Jesualdo Ros, “we are getting calls also from people from Madrid” and he believes in prompt improvement in the local demand.
Real estate analyst Fernando Rodríguez de Acuña from Madrid-based Acuna & Asociados explains that “banks are more cautious nowadays and do not finance the house in 120% for 40 years anymore. Instead, to attempt a house purchase, one needs to dispose of at least 20% of the property value”. He adds “around 40% of all dwellings will never find a buyer for their inattractive localization or simply because people in Spain earn presently too little to afford a home purchase”.
Original article: Bloomberg (by Angeline Benoit & Sharon Smyth)
Summary: AURA REE