The rate of decline in apartment prices in Spain again this year to suspend predicts appraisal company Tinsa. In May, they were reduced by 4%, and by the end of this year already, this process can completely stop. By analogy with the time when the country has lived without a crisis, real estate prices dropped by 40%. These data were read in the report “The situation in the housing market in Spain and its prospects.”
However, the authors of this report did not mention the fact that whether or not to begin a general price increase in 2015. As explained by CEO Tinsa Inigo Valenzuela, “reactivation phase of real estate sector is not far off” at the same time, he has not yet “fully recovered”: at the present time in Spain, including 400 thousand salable and sold real estate. Over time, their number will gradually decrease, at the same time, homes that are on the second and third lines of the coast, will not be sold until at least 2017.
The transition time will be determined by the stability of the labor market, the rise of interest of foreign investors, caused by falling prices (on the coasts, they fell by 50% when compared with the maximum data), including the strengthening of the financial system, which should eventually lead to an increase in the flow of credit . All these factors will help increase the amount of sales transactions by 15-25% in 2014.
However, there are negative factors, such as the terrible working conditions that require short-term contracts to sign and no full-time employment, with a low salary. In contrast, the experts called recovery growth activity in the construction sector. According Tinsa, in 2014 completed 50 thousand houses. Experts suggest that in late 2013 and early 2014 the number of existing objects, finally, it reached its bottom in March and again significantly increased.
Tinsa experts indicate that the information can be confirmed by the second quarter of referral to the stability of prices, however, in the coastal municipalities of the province of Cadiz, Huelva and Tarragona are, as before omitted. In all of this, experts point to the central role of foreign consumers in this market and the arrival of new customers from other countries that have showed no interest – for example, from the Netherlands, the Scandinavian countries, China and the Maghreb.