The increase in confidence will define the residential sector in 2018

The increase in confidence will define the residential sector in 2018


"2018 predicts very good news for the houses market, as it will consolidate the path of growth that we attended in 2017, although still far from the levels reached in the boom years and not exempt from certain risks that can vary the intensity of that growth", explains the director of Research and Public Affairs of fotocasa, Beatriz Toribio.

The year that has ended has been marked by the return of confidence in the sector due to economic and employment recovery, as well as the consolidation of mortgage financing. "We will close 2017 above the 470,000 sales-purchases transactions and the 320,000 mortgages, which means increases of 15% and 14% respectively, regarding the previous year. These are data that reflect the good health of a sector that tends to normalize after the strong adjustment it has suffered in recent years," adds Toribio.

This greater activity had a direct transfer to the prices that, according to the Real Estate Index of fotocasa, will close the present year with an interannual increase of 5.1%, the highest record since 2006, when it was closed with an increase of 7.7%.

Prices will continue their growth rate during the next year if the economy accompanies and, according to the real estate portal, the return of confidence in the sector will be merged with the greater weight of the brand new home. "In 2018 we will see a greater role for new housing, which will translate into a greater number of operations and a more intense price increase since this type of houses is more expensive and is taxed with more taxes".

The average rental price will close 2017 above €8/m2, which is an increase of 9% compared to last year, the highest increase in the entire history of the real estate index of fotocasa. "The average rental price has not stopped rising year on year since March 2015, reflecting the strength that this market is acquiring. And, unlike other times, it does so despite the recovery of the buying and selling market."

According to Toribio, "the rent will continue to be the talk of the town in 2018, since the tensions in prices will remain for a good part of the year" due to the pressure of demand.

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