There are still opportunities in office buildings but investors need to be very selective. And it’s important to add value to the property, for example through refurbishment, according to Eduardo Fernández-Cuesta who worked for 25 years in CBRE.
Miguel Ángel Tramullas | The price of second-hand homes is recovering in Spain, in part driven by the interest of investors who are buying in the big cities to then rent the property out, as a viable option given the lack of alternative investments.
Spain’s mortgage system, which is one of the cheapest and with the best financing conditions in Europe, has allowed more than 80% of families to own their own home. So a priority should be put on maintaining the system’s characteristics, in terms of depth and stability.
Julio Rodríguez | The economic recovery continues to boost a market which has seen prices rise 10.8% in the last three years. But this dynamism contrasts with the problems for accessing the housing market which young aspiring home owners are experiencing. A more energetic government policy is required to establish a pool of homes for rent and strengthen the creation of social housing.
Spain’s National Statistics Institute said yesterday the number of purchase-sale transactions in the property market grew 17.3% in November to 33,806 from a year ago (and compared with a rise of 6.5% in October). That makes ten consecutive months of year-on-year rises. The data confirms the property market is recovering its role as a key economic driver.
Most analysts believe the recovery in the stock prices of Spain’s four big Socimis will continue over the coming months. Between 70% and 80% of all brokerage houses have a buy recommendation. The fact these property investment vehicles have quite high returns and there is very little competition are amongst the positive factors.
“With the recovery embedded we see greater scope for selective risk, taking on asset management in core locations while also considering opportunities in well connected edge of CBD overflow locations,” Deutsche AM Spanish Real Estate Strategic Outlook notes.
The lack of investment alternatives, coupled with the fact that prices and returns are good, are two strong enough reasons for people to take their money out of bank deposits and fixed income securities and buy property.
F.Barciela /F. G. Ljubetic | If the banks are still the protagonists in terms of granting mortgages to private individuals, another thing is new developments where their role is decreasing. Burned by what happened in the past, the banks are looking very closely, and selectively, at each new development proposal. This has meant that in the last few years alternative financing formulas have emerged which property developers are using to push ahead with their projects.
Housing sales in Spain increased by 19.4% year-on-year in June to 36,856 units, the largest figure since January 2013.