Trends of Real Estate Market in 2016
2015 has been a more profitable year for real estate compared to previous years, and last year’s figures allow us to think that 2016 will also be positive. These are the forecasts and trends of the real estate experts for 2016.
Real estate trends in 2016
1. Real estate purchase
In recent years, the number of new homes available in stock has decreased significantly: from 1.2 million in 2008 to 400,000 today. This is a positive sign of recovery, and will have an impact on both the second-hand market and new housing construction.
In fact, because of this decline in new homes in stock, and given the success of the second-hand market in 2015, it is very likely that second-hand home sales will continue to rise in 2016.
On the other hand, as a result of the decrease in the stock of real estate assets in 2015, the number of construction projects increased by 20%. This phenomenon is likely to continue to grow in 2016.
Easier access to loans also has a positive impact on the real estate market. In fact, if the trend continues as in 2015, it may lead to a 15 to 20% increase in property sales in 2016.
2. Real estate rentals
As we have already mentioned, during the year 2015, people in Spain have tended to favour renting over buying. Although the number of Spaniards living in a rented house is still lower than the European average (while in Spain it went from 15% to 23% in 2015, the European average was 30%).
According to experts, it is possible that Spanish rental figures will continue to grow to meet European levels.
3. The profile of buyers in the real estate sector
The low prices due to the economic crisis that started in 2008 have, as expected, attracted foreign buyers. In fact, in Spain, 65% of secondary residences are bought by foreigners. As for the main residences, the vast majority of buyers are Spanish (95%).
Young people are the social group most affected by the crisis due to unemployment. All of this affects to a great extent the relationship with the purchase of a property. They are the ones who will be willing to buy real estate and therefore will have an important role in the future of the sector.