Intermoney | The State plans to facilitate the promotion of 100,000 affordable rental housing units, half of which will come from Sareb, the Spanish bad bank created in 2012, other financial entities and investment funds, according to the newspaper El Economista. Secretary of State for Housing, David Lucas, said this during a real estate event. On the one hand, the Administration is in negotiations with the funds for them to…
spain housing market
The number of home sales and purchases in September is also the highest number of transactions in any month since April 2008, when sales and purchases reached 54,801.
According to the consultancy firm Knight Frank, which in its Global House Price Index has analysed the evolution of prices in 55 countries from 1Q20 to last spring 2021, in the USA, New Zealand, Canada, Australia, Luxembourg and Sweden housing has risen by more than +15%, above the average (+9.2%). Turkey leads the ranking with an increase of +29%. Spain is the market with the biggest fall in the global ranking, with a decrease of 0.9%. India is the other lagging country in the list, with a 0.5% decline.
When it comes to improving the rental market, the parties in the government coalition, PSOE-Unidas Podemos, have very different conceptions. Both agree to include mechanisms to help control rental prices on an ad hoc basis and in the most stressed areas, but Pablo Iglesias’ party is demanding the establishment of limits on rental market prices, while the socialist part of the government has confirmed that they prefers to fiscally stimulate those owners who rent below the prices set by reference indexes.
C. Ocaña and R. Torres (Funcas) | After several years of recovery, Spain housing market shows signs of deceleration, opening a debate about whether this is the prelude to the outbreak of a new bubble. At present there is no real estate bubble in Spain and, therefore, the effects of the slowdown in the real estate sector itself and in the rest of the economy will be limited. In other words, in the current scenario, an adjustment can be expected but not a “flat tire” of the real estate sector.
Caixabank Research | The Spanish housing sector is entering a more mature phase in the cycle, characterised by a weakening in growth in demand and prices. The factors which support the expansion of the housing market (creation of employment, favourable financial conditions and elevated external demand) continue evolving positively but are losing dynamism.
The housing market continues to show an intense dynamic. Sales increased 9.7% in September, and drives an accumulated figure of 395,534 operations in the year so far, the largest volume in this period since 2008. Although the vigour is seen in all segments, sales of new houses stand, up 11.5% up to Q318.
Ratings agency Fitch has warned that a property bubble is evident in the centres of Spain’s large cities. But it makes it clear that it does not anticipate any generalised bubble in housing prices in the country in the short-term. This is due to the high level of stock which still has to be absorbed and the restrictions on buying a home.
Housing prices have grown 16% since end-2014, according to the Bank of Spain. This is after a decline of 37% in nominal terms (45% in real terms) since their peak at end-2007.
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.