Employment in Real Estate Sector Suffers Fall of 4.6% in the 3rd-Quarter of 2019

28 October 2019 – Employment in real estate sector fell by 4.6% y-o-y in the third quarter of this year, its first fall in six years. The number of people employed in real estate activities dropped to 150,200 professionals, according to data from the National Statistics Institute’s (INE) Active Population Survey (EPA).

The decline marked the first year-on-year drop since the second quarter of 2013, when employment fell by 16%, amid the European real estate and financial crisis.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Málaga Leads the Construction Sector in Andalucía with an Occupancy Rate of 88%

10 May 2019 – Expansión

Málaga is leading the ranking of house sales in Andalucía with 32,438 transactions and a market share of 32%, almost doubling that of its nearest rival, Sevilla (17.4%).

According to the participants of the round table organised by the Association of Property Developers and Construction Companies in Málaga (pictured above), the province is currently the driving force behind the construction sector and is home to some of the highest employment rates in the country (88.5%). That means that the sector now employs 62,700 people of the 70,200 surveyed in the Active Population Survey (EPA) when just five years ago, that figure amounted to just 57%.

In terms of the challenges facing the sector, the most important ones are rising rental prices and the generation of buildable land. In this context, the General Secretary for Housing at the Junta de Andalucía, Alicia Martínez, took advantage of the round table event to announce a new housing plan called ‘Plan Vive Andalucía’, which includes a greater commitment to affordable housing, the reactivation of obsolete urban areas and the promotion of R&D in the sector, amongst other initiatives.

Original story: Expansión (by Juan A. Gómez)

Translation: Carmel Drake

# Of Estate Agents Grow With A Vengeance In The Community Of Madrid

19 September 2017 – Real Estate Press

The resurgence of real estate activity in Spain, and in particular, in the Community of Madrid, has given rise to a significant increase in the number of companies in the sector, which have grown by 18.5% since 2014. Currently, the Community of Madrid has 31,384 real estate companies and 33,616 real estate related premises. In other words, one for every 192 inhabitants.

So far this year, 41,641 homes have been sold in Madrid, up by 17% compared to a year ago, and up by 30% compared to two years ago. Moreover, prices rose by 10.9% in the second quarter of 2017 with respect to the previous year. In addition, rental prices have risen by 11% over the last year.

Jaime Cabrero, President of the Official College of Real Estate Agents in Madrid, says that “Normally, when the sales market is strong, the rental market is weaker, and vice versa, but now both sectors are booming”. He added that “Naturally, we are seeing an increase in (the number of) real estate companies (…); there are 33,616 estate agent premises”, which is a high number of establishments dedicated to real estate activity.

According to figures from the Central Directory of Companies, compiled by Spain’s National Institute of Statistics (INE), over the last three years, the number of estate agent premises has risen by 5,377. The increase in the number of companies, many of which have more than one branch, amounts to 4,912. Logically, this activity has an impact on employment. During the second half of 2017, the sector provided work to 29,300 people, according to the INE’s Active Population Survey, 8,800 more than in 2014 and the highest figure for the last decade.

In fact, the real estate activity category includes all companies dedicated to the sale, purchase or rental of all kinds of properties, including “lessors, agents and brokers”, as well as other key services, such as appraisal. The category also includes companies dedicated to construction, which then carry out the maintenance and rental of buildings, as well as managers of real estate properties. The sub-category containing the latter – “real estate activities on behalf of third parties” – grew by 1,773 companies between 2014 and 2017, to exceed 10,000 in total.

Original story: Real Estate Press

Translation: Carmel Drake

BBVA: Housing Market Makes A Strong Start To 2017

10 May 2017 – Europa Press

BBVA’s latest report highlights the “positive” evolution of the real estate market at the beginning of 2017, given that house purchases are still being “backed” by mortgage financing, construction is continuing to grow and house sales are maintaining their upwards trend.

At least that is according to the “Real Estate Observatory of Spain”, compiled by BBVA Research, the financial entity’s research service and BBVA’s Real Estate area, which states that the recent review of the macroeconomic scenario by BBVA, which forecasts GDP growth of 3% this year, introduces “an upwards bias into the forecasts for 2017”.

In this sense, the entity highlights that house sales maintained their growth rate, supported by the “strong performance” in terms of employment and mortgage loans, whilst construction activity also “remained dynamic”.

According to data from the General Council of Notaries, during the first two months of 2017, 72,371 homes were sold, up by 13.9% compared to a year ago, but in line with the average for 2016 as a whole.

Amongst the factors that BBVA points to as reasons for the improvement in the real estate sector, are the labour market in Spain, which “has continued to improve”, as reflected by Social Security sign-on data, such as the Active Population Survey (EPA). According to the EPA, the number of people in employment grew by 0.6% during the first quarter of the year.

In addition, credit conditions remain “favourable” for households. Interest rates are at minimum levels: the mortgage rate for new operations remains at around 2.2%; meanwhile, the 12-month Euribor rate hit a new minimum in April, closing at -0.119%.

The mortgage market supports residential demand

Moreover, the mortgage market is continuing to drive residential demand. New loans to buy a home rose by 23.5% YoY during the first quarter, excluding refinancings, according to data from the Bank of Spain.

In turn, during the first two months of 2017, almost 12,800 housing permits were granted (20.3% YoY).

Finally, BBVA highlights that the dynamics in the market for land “are still positive”, given that during the first two months of the year, the number of transactions involving land rose by 12.8% YoY, which represents an increase in the traded surface area of 8.8% in one year.

Original story: Europa Press 

Translation: Carmel Drake