Trends in real estate for 2017
Once 2016 is finished, from Font Real Estate we want to show you some of the trends that are expected for the year 2017 in the sale of real estate. These forecasts are drawn from different sources of information that will determine to a greater extent the evolution of the real estate market for the coming months.
What do we have in 2017 in real estate?
The year 2016 has been a year of consolidation in respect to the recovery of the sector already started in previous years. According to reports, forecasts and analysis of some of the real estate experts contrasted in Spain, the real estate sector will continue this upward trajectory during the next year.
3 of the most outstanding trends for the year 2017 will be:
- Although there is an upward trend in house prices, (between 3% and 5%) there will be an increase in the purchase and sale operations (residential, tourist and industrial).
- Although it highlights the current shortage of promotions of new construction in large cities, there is a recovery of the construction sector of new housing. It is estimated that in 2017 will be the first increase in sales of new housing after almost 10 years of decline.
3. Banks will once again promote mortgage flexibility and stimulation of credit. The European commission works on a new mortgage index, the Euribor plus.
It will have to take into account the possible negative effects of Brexit in the Spanish real estate market. British buyers have had a strong presence in recent years in the purchase of homes in Spain.
Despite this, the purchase and sale of housing by foreigners has grown by more than 18% during 2016.
The luxury housing market will have strong demand in 2017. The interest of foreign buyers in destinations such as the Costa Brava, will make that even in new construction, the prices are attractive for this segment of buyers.
Definitely; We can highlight in the forecast of the real estate sector for the year 2017:
• Housing prices are expected to continue to grow especially in cities like Madrid or Barcelona but without reaching a real estate bubble.
• A long real estate cycle is expected, which would continue at least until 2020
• The demand for housing will increase although the supply will remain very limited.
• Home buyers demand professionals like Font Real Estate, who bring value to them in the buying process. They want the professional to accompany them during the process and especially at the time of the negotiation. One of our maxims when looking for a house according to your needs.
• The start of the economic recovery has affected the increase in the demand for housing in Spain, but despite this it seems that the trend is not complete the full recovery.
Spain is still a country of buyers. The current low interest rates on loans favor the purchase of a house with monthly payments lower than the price of a rent, in addition to adding the future profitability of the house.
Learn more about the real estate sector in our blog.