Take advantage of the best opportunities
Investors return to traditional values: precious metals and HOUSING. During the years of the crisis, with a 30% fall in the price of housing in Spain, many investors took the opportunity to invest their savings in the real estate market. It was a matter of waiting and recovering the amount invested with profits that hardly any financial product could offer them. At the moment, their wait is being rewarded because prices have started to pick up at a rate of 3-5% per year.
The real estate experienced produced by PELLICER & HEREDIA Real Estate Department, shows a solid growth phase, and there is an improvement in financing conditions, and demand in some areas is intense, including foreign demand.
For Pedro Heredia, Lawyer of PELLICER & HEREDIA Abogados, specialized on property law, the signs that confirm the recovery are palpable. On the one hand, the increase in the supply of credit for the purchase of housing, and the minimum levels of interest rates has provoked a solid foreign demand in the purchase of properties in Spain, all of this makes very for attractive prices, in a market that until recently had touched the minimum prices of the last decade.
With this data, for Oddny Tronstad from CostaBlancaBolig – Costa Blanca South, an expert in the Spanish residential real estate market and with a portfolio of clients mainly from northern Europe, we cannot speak of a new Real estate boom. Oddny states, we are not in a situation of investment in housing in a speculative way, and she understands that the crisis like the one started in 2008 will not happen again and that it is a good time to invest in housing in Spain, due to the low prices of housing and minimum levels of bank interest rates. And Julie Colcutt, of Altavillas Properties – Costa Blanca North-, an expert in the Spanish residential real estate market and with a portfolio of clients mainly from northern Europe, acknowledges that there is a strong demand to invest in Spain, mainly due to the good expectations regarding the evolution of the real estate sector strongly supported by the positive evolution of the rental market.
On the other hand, Ignacio Pellicer, Lawyer of PELLICER & HEREDIA Abogados, specialized on property law, does not believe that all these components will lead to a new housing bubble, due to the introduction of rules to avoid it, mainly in the banking sector with new regulation and supervision.
Forecasts in the real estate sector
At the moment some research services, mainly financial institutions, have begun to make their forecasts of what could happen in the short term. All agree that house prices will continue to grow between 3% and 5% over the next 2 years. The main players in the purchase of housing will be families who have not lost their jobs and want to purchase a better house, families that can access financing, the foreigners who decide to make Spain the country to establish their habitual residence, as well as investors (Spanish and Foreigners) for whom housing has become an active option for greater profitability.
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