Posted on April 29, 2016 in Property
Real estate industry experts from KPMG, Deloitte, N+1, and PwC have forecast that this year Spain will register around 440,000 home sales, which would represent an increase compared with last year of between 10% and 12%, with transactions amounting to a value of over 20,000 million euros, exceeding the 18,000 million euros in transactions last year.
Furthermore, El Economista reported that they emphasised that there is currently a great appetite for real estate investment, since the low interest rates facilitating Spain’s economic recovery are also presenting investment opportunities, and that they have noted increases in real estate investment portfolios.
Demand is also recovering, according to the experts, especially private demand, where sales are expected to rise by as much as 12% thanks to the economic growth, the pace of job creation and the best purchasing conditions due to the favourable mortgage interest rates.
In this regard, they pointed out that of the 400,000 housing transactions carried out last year, 60% were for individuals, with only 240,000 new mortgages contracted, which highlighted the fact that 40% of these market transactions were made with “pure cash”.
Moreover, the experts predicted that, at a time of “significant” demand for housing, there will be a progressive reduction of the housing stock taking place in the towns with more than 50,000 inhabitants, which will influence the increase in the price of land.
However, they also pointed out that the value of the transaction will be “much higher” for the type of asset and because “the improvement of economic prospects, despite the uncertainty, means that today you pay more for the same asset, which means that the transaction value has gone up”.