The prospects for economic growth, improved employment and favorable financing conditions will lead to a further increase in home sales in 2015, which will be accompanied by “moderate” growth in prices and a further increase in construction activity.
This is revealed in the latest ‘Spain Real Estate Flash’, prepared by the BBVA Research Department and which certifies that “the recently concluded 2014 could be classified as the year of the beginning of the recovery of the real estate sector”.
Recovery of the sale
The entity recalls that, according to the General Council of Notaries, the demand for housing has been recovering month by month to close the year with 364,000 homes sold, 19.1% more than in 2013. “This is the first promotion since 2007 and shows the greater dynamism of the mortgage market”, specifies BBVA.
At the same time, data from the Ministry of Public Works reflect a 0.5% increase in house prices over the past year, once again, the first increase since the start of the crisis.
This recovery of the main real estate parameters has allowed permits to build new homes to grow by 1.7% in 2014, which, as the financial institution recalls, “breaks seven consecutive years of falls and makes 2014 the point of inflection of the construction activity”.
The report expects this recovery trend to take hold in 2015. For now, BBVA Research expects the Spanish economy to grow by 2.7% this year, with the creation of around half a million jobs and relatively stable interest rates. .
“Factors, all of them, that suggest a new increase in home sales to which prices and construction activity will respond with growth,” he says.
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