By Euro Weekly News Media • 17 December 2014 • 12:44
POSITIVE: Predictions for property market.
ANALYSTS at BBVA bank are putting an optimistic face on their predictions for the Spanish property market.
In their latest report, Spanish Property Flash, they say November’s data shows a turning point in demand in the real estate sector with double digit growth year on year.
Put that into context with price stability and a slight increase in new building permits over the summer, and the signs are there for a recovery in not just sales, but also prices.
The report says: “2015 may mark the beginning of a moderate recovery in residential developments. The improvement in housing sales continues. The latest housing sales figures demonstrate the improvement throughout 2014: sales leapt at a rate of 20.7 per cent.
The report went on to state: “This improvement in sales is underpinned by the recovery in residential demand fundamentals: employment grew again and, in its turn, consumer confidence continued to show an upward trend.
“Furthermore, all this is taking place in an environment of financial stability, which the reduction in funding costs continues to encourage. All in all, aggregate housing sales between January and September revealed growth of 18 per cent over the same period the year before, which corroborates our forecast that 2014 will mark the turning point in operations.
The report added that a recovery in the construction industry is carrying on with five consecutive months of growth, the longest period of expansion since the economic crisis began.
The analysts added: “Businesses are feeling less negative about the future outlook for the sector, reflected in the timid recovery in the industrial sentiment indexes in all construction segments. This improvement in activity has also spread to the labour market, where all the employment indicators show a positive movement in the building segment. Unemployment in the sector fell by nearly 9,500 workers in October.”
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