The price of housing will grow by 5.4% in 2018 and will accelerate the sale of homes for this year, to about 670,000 operations, which is 24% more than estimated for 2017, according to the sixth report on the ' Residential market in Spain 'prepared by Servihabitat Trends, the research and analysis platform of the Servihabitat sector.
The report foresees a growth of 5.4% for this year, a lower percentage than that which closed in 2017 where it grew by 6.2%. In Cantabria, Castilla-La Mancha, Aragon, Asturias, Navarra and La Rioja recorded more operations than the national average and an evolution of the price below it.
In addition, it indicates that the average effort that a household in Spain must make to acquire its home, according to the number of years of gross income that should be used to pay for it, continues to grow moderately, reaching around seven years closing of 2017.
In parallel, sales will continue to grow steadily, with a forecast of 669,739 homes sold at the end of the year, representing an increase of 24.3% over 2017.
The report explains that the increase in demand to acquire a home is driven by several factors, such as the creation of jobs at a good pace and greater confidence and expectations for the future; the granting of more mortgage loans, although financial entities do so in a moderate manner; and active demand for investment in real estate.
The CEO of Servihabitat, Iheb Nafaa, points out that in 2018 the residential market in Spain "consolidates its progress, with a dynamic market in general terms throughout the territory, although there are still differences between areas of the country that should be taken into account when analyzing the situation ".
Andalusia, Valencia and Catalonia lead in buying and selling
By Autonomous Communities, Andalusia, the Valencian Community and Catalonia lead the volume of sales planned for 2018, with Ceuta and Melilla, La Rioja and Navarra in the queue. Regarding the transactions by type of real estate, Servihabitat forecasts for 2018 indicate that it can be divided into 8.5% for new work and 91.5% for second hand.
According to the Network of collaborating agents (APIs) of Servihabitat, the most demanded habitual residence, both in height and single-family attached, has three bedrooms, and the isolated single-family house with four bedrooms. In the case of the holiday home, if it is in height it has two bedrooms and if it is the detached and isolated single-family houses they have three bedrooms, mainly.
41% of the sales for the habitual residence have been made between 4 and 6 months and 27% have been made in just three months. In the case of the holiday home, the average time of sale for almost half of the operations (47%) has been reduced to three months.
Similarly, the average age for the purchase of a habitual residence is 38 years in Spain, and in the case of the holiday home it is 46.5 years.
More than 90,000 homes started and 63,000 finished
The Servihabitat report predicts that 93,895 homes will be started this year, which would mean an increase of 16.6% compared to 2017, a year that, according to the latest available data and analysis of market behavior, would end with 80,527 homes started.
Thus, for this 2018 estimated 7,825 homes started monthly average, which is equivalent to an average national progress of 1,114 more visas compared to the months of the previous year.
The Community of Madrid, Andalusia and Catalonia would remain like the autonomous communities where a greater number of projects of the country will be initiated. Regarding finished homes, the annual total will be 62,744 homes, which represents an advance of 15.5% and the record volume of the last five years.
The absorption of new construction stock already has more weight than rent
In turn, the volume of stock of new homes maintains a downward line and it is expected that the absorption of the stock continues, until the end of the year with a decrease of 4%, which adds to the 4.1% reduction at the close of 2017. Despite this trend, there is still a ratio of 97.7 new homes per 10,000 inhabitants.
Likewise, the study shows that residential rental continues to gain weight in Spain. In 15 years, those between 2001 and 2016, the percentage of property ownership has decreased from 82.8% to 77.8% and, on the contrary, the percentage of rental housing has risen five percentage points of 17.8% to almost 23%.
However, the difference between the population living on rent in Spain (22.2%) and that of the EU-28 average (30.7%) is still very large.
The average price of rental homes of between 80 and 90 square meters in Spain is 680 euros, 9.7% higher than six months ago, although in the Community of Madrid (+ 14.1%) and in the Islands Balearic Islands (+ 9.9%) this increase is even greater.
On the other hand, the average gross rental return in Spain stands at 5.7%, maintaining its upward trend, although with a moderate overall increase, both in large operations and in smaller ones. Despite this increase, in the Balearic Islands and Catalonia the indicator has fallen.
Foreigners make 17.5% of transactions
The study also shows that the total volume of homes sold in Spain by foreigners has increased, rising to 89,205 properties, which represents an increase of 13.8% over the same period of the previous year. In this way, the volume of transactions by foreigners represents 17.5% of the total purchases made in 2017.
The purchases made by foreigners are located, mainly, in seven autonomous communities: Catalonia, the Community of Madrid, the Balearic Islands, the Canary Islands, Andalusia, Murcia and the Valencian Community. Specifically, 93% of the transactions carried out by foreigners take place in the main capitals and on the Mediterranean coast.