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Experts: 2018 will be the best for Spanish property

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19.01.2018

The expiring year became for the Spanish property market is a good period, and analysts believe that in 2018, the upward trend will continue. As reported by news agencies of the country, increasing the confidence of the investors and their ambition to achieve profitability, this factor contributed to the expansion of the range of opportunities for investment in real estate. According to Joaquin Robles from the company XTB, in the short term, this sector will once again return to their maximum performance, as he currently is in a privileged position from the viewpoint of achieving good results in the next year. In turn, lecturer at the Institute of stock exchange studies (IEB) Javier Niederreiter stressed that economic recovery and low interest rates on loans also contribute to the growth of the real estate sector, as "debt for investment or purchase continues to cost cheap." In addition, the current conditions he called ideal for further growth of the sector: prices are rising, as the level of economic activity, and the cost of financing remains low. In this sense, ATL Capital analyst Ignacio Campos highlighted another favorable factor in the growth and sale of real estate assets purchased by banks from other agents during the crisis of 2007, which led to increased supply and lower prices. Campos believes that the price increase entails a rise in the appraised value of the assets, and hence demand from investors. Such positive prospects are also reflected on the Alternative stock market (MAB), whose leadership over the past year admitted to the negotiation process, a total of 46 companies, specializing in real estate investment (Socimi). The main risks associated with similar types of investments, Robles calls the probability of a negative impact of demand level and growth rates in case of changes in the negative direction. With regard to the emergence of a new bubble in the market, experts rule out this possibility: the current circumstances are different from that of 2007, since the requirements for borrowers have become much more strict. According to experts, it is about restoring value, which in many urban areas is already close to the 2007 figures. Despite this, Niederreiter stressed that "10 years ago has risen in price all kinds of assets, while today the prices in the tourist segment remains quite low." This is due to the fact that banks are still getting rid of the ballasts and cheap real estate. In conclusion, Campos stressed that the current cycle could last another 3-4 years and warned that low cost of lending is always the risk of blister formation.