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S&P predicts further rise in prices for Spanish property

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According to forecasts by rating Agency Standard&Poor's, prices on the residential real estate market of Spain in the next three years will continue to grow, but not reach the level of boom that was observed before the economic crisis. S&P introduced the report, which also notes that the growth rate of housing prices in the coming years will be reduced. So, according to Agency estimates, this year the growth will be 5.6%, in 2019 – 4,3%, in 2020 – 3.5% in 2021 – 3%. According to forecasts based on data of the Ministry of development of Spain, to the beginning of the next decade the average cost of square meter set at 1,800 euros, which is much higher than during the crisis (less than 1460 € /m2 in 2014), but below the peak recorded in the boom period in the real estate market. So, in 2007-2008, a square meter in Spain cost an average of more than 2 thousand euros. At the moment this figure is 24% lower. Experts in the field of real estate wave of fears about the formation of a new bubble in the property market at present, citing a number of factors. If in 2006 it was concluded 955 thousand residential real estate transactions, over the past 12 months, there were 542 thousand. 12 years ago were issued 1.3 million mortgages, and now their number does not exceed 400 thousand. Besides, on the eve of the crisis was built more than 800 thousand apartments a year, and the current figure is 10 times lower. Among other factors, a decline burdened by loans among the Spaniards, who sent a smaller proportion of their income on repayments than it was previously. In addition, in recent years banks mostly set the requirement of 20% down payment for the mortgage.