Investment in housing will end 2017 above 4.5% of GDP
According to the Bank of Spain, in its last quarterly report on the country's economy, housing investment will close 2017 above 4.5% GDP , an index similar to the average of the countries of the Spanish environment "and that is very far from the 12% recorded in 2007."
On the other hand, the entity states that the price of housing keeps its upward trend , the cost of new housing being "slightly higher than that of the housing used", although the difference has been decreasing in recent months. Recall that the price of housing, in general, fell by 45% from the maximum reached in 2007.
Madrid, Catalonia and the Balearic Islands have been the fastest growing communities.
On the other hand, the report shows that housing investment has advanced by 1.5% between the fourth quarter of 2017 and the third quarter, a rate higher than that registered by the constriction as a whole, whose average It has been 1%.
In this context, the sale of housing also shows an upward trend from the minimums reached in 2014, with transactions "mainly sustained" by the second-hand housing segment, while new home transactions "continue a slight decline".
Likewise, the real estate market is improving its tone . "The interannual contraction rate of loans for the acquisition of housing is maintained" but "the new loans granted are not enough to compensate the amortizations".
As for new work, its initiation Residential is also improving, but it has "some delay" , due to the "high stock" of unsold homes, whose absorption is being slow.
In addition, the demand is concentrated in areas that are not They necessarily coincide with those in which unsold houses are located and this leads to the uneven growth of prices.
It will be demographics that determines the evolution of the Spanish real estate market . The institution considers in principle a "favorable" progress of the labor market, financing conditions and construction by companies in the sector.