Values of Houses Have Bottomed-Out Or… They Haven´t

30/05/2014 – Cinco Dias

“We have spent a lot of time in silence because if we had done it, everybody would blame us for the recession, but now the time has come to start doing it again”, said José Manuel Galindo, the chairman of Spanish Association of Developers-Builders, at his yesterday´s SIMA conference hearing in Madrid. He added that on facing such an extolled economic recovery the real estate developers want to be a wagon, not the locomotive pulling Spain out from the crisis.

Just as during the housing boom, prices is the hottest topic at the conference that will end on 1st June.

According to José Luis Feito, president of the Institute of Economic Studies and vice-president of the Spanish Confederation of Business Organizations (or CEOE), the recovery comes firmly and employment and improvement “are synchronising”. Moreover, he claims property prices will jump “sharply” in 2016, precisely between 6% or 8% to smooth out after that.

Another expert from the sector pointed out that perhaps the forecasts are spread to fuel the meeting demand by convincing the investors the moment to buy has come as the prices are to rise at any moment.

Juan Fernández-Aceytuno, general director of Sociedad de Tasación believes the housing values could hit the bottom in 2015. “We cannot see the bottom yet”, he assured and added “I do not like markets moved by cowboys who jump in, buy cheap and leave at the first chance. This is not a long-term investment in a country”. What is more, he advised to design a plan which would allow to reduce dependance on foreign funds on the way to recovery.

 

Original article: Cinco Días (by Raquel Díaz Guijarro)

Translation: AURA REE

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