Today, many indicators support a return to confidence in the real estate sector, and experts are talking about the evolution of the market.
The Housing Price Index corresponding to the second quarter of 2017 published by the National Institute of Statistics, reflects an annual increase of 5.6%, although prices move at different speeds in different regions. The investments concentrate especially in large cities and in the most prominent tourist destinations. Also, during this period there was a significant activity in the purchase and sale of second-hand homes, and prices grew at a higher rate than new builds (5.8% of the first compared with 4.4% of the second).
Experts agree that it comes hand in hand with the improvement in the economy, employment and the consolidation of financing.”
The data of Mortgage Statistics corresponding to June of 2017 reveals that there has been a 16.5% growth compared to the same period 2016. Fixed rate mortgages are taking a lot of weight, being almost 38% of the total and the average term of a loan is 23 years.
A new model of real estate investment is very profitable: Buy a property for subsequent lease. Many consider this activity because of the rise in demand for rent that has occurred in recent months in Spain, creating a new market model with very healthy returns.
But, why is this return to confidence in the real estate market?
Experts agree that it comes hand in hand with the improvement in the economy, employment and the consolidation of financing and this means that the real estate sector will once again arouse interest for large investors. At the same time, banks and citizens are more prudent when making mortgage contracts. During last year, numerous judgments and measures have been issued in favour of consumers to protect, give security, and review models of Bank Contracts that contain clauses that are not currently admissible.
However, although there is recovery, the price of the homes is still almost 40% below that of the heights reached in 2008.