BBVA Forecasts Continued Gradual Growth in House Prices
BBVA Research, the research service of the financial institution, says the price of housing in Spain “has not only bottomed out, but will continue its path of gradual growth in the coming months”.
The BBVA explains in their latest Spain Real Estate Observatory report published last week that, while the “optimism about the future state of the economy seems moderate” it will lead to the purchase of housing, especially replacement housing or as a means of investment.
El Economista reported that, in addition, the entity highlighted that the tourism data for Spain indicates a new record is likely this year, which will surely maintain the good tone of foreign demand. The BBVA also added that, in addition to the aforementioned, it should be noted that the present financing conditions remain very favourable to buyers.
According to the report, the real estate market in the first half of 2016 has shown a positive trend as a whole, creating employment as a result of increased economic growth, increasing access to credit in a financially stable environment, and that the change of expectations around the sector accounts for the growth in sales and the initiation of housing between January and June.
Looking to the second half of the year, the BBVA expects that the residential sector will continue “along the trend of growth, although economic moderation expected for the last months of the year suggests slower growth in housing sales compared to those recorded in the first half”. The uncertainty surrounding the economic policy decisions may also have some reflection in the demand.