Will 2017 be the year of real estate consolidation?
Experts believe that the price of flats will rise by about 5%, and sales, more than 10%.
The housing market recovery is unequivocal, so the question now being asked by real estate consultants is: Will 2017 be the year of consolidation? In other words, will the recovery spread throughout the country and will the sector reach cruising speed? That is the question.
The consensus of the real estate experts consulted by this newspaper places the floor price growth between 4% and 6%. Likewise, the generalized prediction is that even 500.00 sales of residential real estate could be reached, which is considered a “healthy” or “normal” level for a market such as Spanish.
There is consensus that the number of new or used floor operations will rise by at least 10%. The National Statistics Institute certified that 403,866 apartments were traded last year, 13.6% more than in 2015. It was the first time since 2010 that the brick market exceeded 400,000 operations, and this year will be, according to Houses for analysis, even better. The purchase and sale will grow in all autonomies in 2017, especially in Catalonia, the Balearic Islands, the Canary Islands and Madrid, which are the four regions that are marking the trend of the sector.
Something similar happens with average house prices. The impulse of large cities is already driving the medium-sized capitals, which will recover most clearly in 2017. Not surprisingly, Tinsa found yesterday that the assessed value of residential property in March experienced a year-on-year growth of 2 , 7%, but rose more than double, 5.5%, in provincial capitals and large cities.
Almost all the forecasts of the main real estate analysis houses are around 5% higher, and highlight the disparity of the country’s different real estate markets. Servihabitat believes that residential real estate will increase by 4.3%. The consultant Aguirre Newman estimates “a growth around 6%”. From JLL believe that in the centers of the cities or the exclusive locations in the coast will be registered “increments superior to 6%”. In CBRE, they bet that the price of flats “will rise between 4% and 5% in 2017, and in Madrid and Barcelona, above 6%”.
The formation of new homes and, above all, the sharp increase in purchases made by investors is spurring demand. These two variables, coupled with the strong rise of the rental market, keep Madrid and Barcelona as real engines of the market. In the first quarter of 2017, the price skyrocketed in the city of Barcelona by 12.1% and in the capital of Spain, by 7.7%.
The data from the other three large cities are much less powerful. The price of flats rose only 1.1% in Valencia, fell by 1.1% in Sevilla and increased by 2.5% in Zaragoza. Other capital cities that stand out for their higher prices are Alicante (+ 11.7%), Vitoria (+ 9.3%) and Las Palmas de Gran Canaria (+ 7.8%).
In this positive context, 71% of Spanish people believe it is a good time to buy a home, according to a report by Solvia. Among the arguments that justify this response are the notion that buying is a good investment. However, the perception changes when asked about their personal situation: 61% believe that “from their private perspective it is a bad time” to acquire a residential property in property.
Source: Expansión
