In 2020, the real estate market in Spain faces a key moment. After several years with rising prices and sales figures around 500,000 operations, this starting year could mean a continuation of the slowdown that already began to show in 2019, as indicated by the forecasts of the sector itself.
In this way, the purchase and sale of homes faces in 2020 a moderation or a slowdown in both their prices and the number of operations that are expected to close throughout the year, according to real estate experts and the forecasts that The main companies, portals and appraisers of the sector have been publishing.
For the director of Studies of flats, Ferran Font, the Mortgage Law and political instability have contributed “certain insecurity to the market and the sector in general” in 2019, impacting in the case of mortgage credit regulations “very remarkable in the closing of sales from summer to the month of October, according to the data that we have in the INE “.
However, for Font one of the main problems of the market both for buying and renting housing “we have it in the capacity to pay the demand”. The director of Estudios.com floors points out that the evolution of prices has not been accompanied by the evolution of wages, especially of the younger generations, leaving them unable to cope with the purchase of a home.
New construction visas, a reference to follow in 2020
In addition, Ferran Font states that one of the factors that must be taken into account in 2020, in addition to the moderation of sales prices and its different evolution by territories, is how the granting of new construction visas will behave. Especially, because it is very likely that in 2019 it has managed to approximate the volume of a decade ago.
“This 2019, we will be around 110,000 new construction visas,” says Font, who compares these data with the 80,000 visas granted in 2017 and 650,000 in 2007. “The 100,000 new construction visas have not been exceeded for almost 10 years, since 2010, “adds the expert, who believes that second-hand housing will continue to lead sales” at least in the short term. ”
Within the used housing, Ferran Font emphasizes “how the surplus housing has been absorbed from the real estate boom has not been homogeneous throughout the national territory”, which adds to other factors, such as the concentration of population in large cities and , therefore, of a greater volume of demand, both national and international.
investment in housing
Regarding the investment in housing as a refuge for savings, the floors.com expert states that the ECB’s type policies are generating that getting credit to invest is economical, so “it remains an interesting investment for all those who seek a safe return “for the evolution of prices and why” investing to rent also gives interesting returns, “according to Font.
After closing 2019 over 100,000 new construction visas for the first time in 10 years, experts say that second-hand housing will continue to lead the market in the short term.
Investing to rent also gives interesting returns