House prices to grow between 3% and 6% in Spain in 2017

House prices to grow between 3% and 6% in Spain in 2017

This is one of the main conclusions of the ‘Barómetro de Tendencias Inmobiliarias’ (Barometer of Real Estate Tendencies) produced annually by CBRE. In order to carry out this research for the Barometer, this real estate consultancy surveyed 100 of the principal experts in the sector in our country.

This indicator is especially relevant because it is the first time since the beginning of the crisis that the sector experts foresee a rise in generalised prices in the Spanish residential market. This, together with other data, is proof of the recovery of the housing market. Indeed, 56% of those surveyed believe that housing take up will rise evenly and half of them feel that prime profitability will also grow in the residential sector. CBRE points to the prediction of a demand for houses between 2016 and 2015 of 180,000 units a year. Madrid is predicted to be the most active zone, followed by Barcelona and the Mediterranean coast.

About 60% of the experts consulted predict that the private investors Family Office will be more active than in 2017 than last year, followed by the core plus funds  (according to 44%) and the institutional investors (30%). Additionally, 58% of the leaders in the sector believe that opportunist investors will reduce their activity in the market in 2017, an important change in respect of the last few years.

However, it is the improvement in perception that most attracts attention, the perception that those surveyed had of the role that developers and promoters will play this year. In this sense, the President of CBRE Spain, Adolfo Ramírez-Escudero, is sure that the development sector is on the verge of an important transformation as a consequence, on the one hand of new market tendencies and the exigencies of demand, and, on the other hand, new players who have begun to participate in the development business.

On the other hand, as for other participants, the socimis will continue their important role according to 1 in 3 experts. International investors will also be extremely important in 2017, according to 31.5%, and, for their part, national investors will remain stable compared to last years or may slightly increase their market presence in the opinion of the vast majority.

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