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On the Spanish real estate market new players and new trends

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18.02.2018

On the Spanish real estate market there are new players, setting trends. This includes investment funds, companies (Socimi), specializing in investments in assets of this kind, as well as the newly established real estate development company. In addition, one of the most important roles played by private clients. Some experts believe that in the previous stages of development about them have almost forgotten, placing a priority on sales and financial results; others believe that buyers of mind did not miss ever, but now they have become more demanding and a much greater amount of information thanks to new technologies, allowing you to compare prices and features. However, there is no doubt the fact of their return in the game that led to such a significant increase in demand, today it is significantly greater than the supply. In total, 2017, was issued licenses for the construction of 80 000 residential properties, and this year this figure could rise to 100,000. According to the Executive Director of the company Neinor Homes Juan Velayos, in order to meet existing demand, it is necessary to issue permits for the construction of 150 000 objects. "As a rule, buyers are looking for a new home, the purchase of which they still sell," – said the head of residential property at Knight Frank Carlos Zamora. According to him, the profile of current clients is significantly different from what prevailed in the pre-crisis period of flourishing real estate market, when the bulk of the players were speculators. Today's potential owners pay attention primarily on price and location, not forgetting the materials, quality of finish, layout and the ability to adapt a house or apartment to fit their needs before arrival. Developers strive to satisfy such requests and do everything possible so that every customer was satisfied with the entire purchase process. One of the determining factors when making purchasing decisions is the cost of housing. According to the study thematic portal Fotocasa, 63% of respondents consider price a key sostavlyayuschie. The average budget of buying at the moment is around 173 000 euros. The most significant amounts include the inhabitants of Madrid, Catalonia and the Basque Country. "Basically the property is purchased for permanent residence, but a significant part also buyers the vacation housing," said Beatriz Toribio, head of research at Fotocasa. The authors of the report also note that more than half of them are representatives of the age group from 35 to 54 years. "As a rule, these families are middle age, who could not buy property in the crisis years, and now have the opportunity thanks to the sale of the old housing," says Toribio. According to her, the most popular are the objects, whose age ranges from 6 to 20 years: offer in this category more extensively, leading to some reduction in prices. The decision of the customer also affects the location of the future property. Many of them choose housing in well-known areas where they have lived all their life; others come from proximity to metro stations or other transportation. As mentioned above, special attention is paid to the quality of materials, finish and energy efficiency of the property. Along with buyers permanent housing are growing and clients are investing in property for rent. The growth of the rental market, which is largely influenced by the demand from young people who are not able to purchase homes, led to the fact that in 2017, in Catalonia, on the Balearic Islands and Madrid was beaten all records of value. According Fotocasa, in the Metropolitan area rent rose by 6.3%, and next year is expected to average growth of 10%. In light of these circumstances, experts are increasingly talking about the beginning of the boom period in this segment. Often, buyers for rent buy real estate in new buildings. In other cases they prefer to buy apartments that need repair. A significant portion of investors chooses housing in areas somewhat remote from the centre but with good transport links. Typically, homes in these areas are older and in need of repair. The total budget of the purchase and subsequent work does not exceed EUR 100 000, and the level of profitability is about 8%.