Every year the holidays bring a sense of joy, excitement and hope for a new year. With that there is also an augmented need to shop, to indulge in the holiday luxuries and inevitably end up with endless expenses that we choose to play a blind eye to during the holiday season.
Then every January we face the reality of a new year, of cutting back on expenses, on arranging budgets and on setting resolutions like saving more this new year. This can often be a difficult endeavor, specially on a month when we seem to have all expenses pile on top of each other.
An easy and efficient solution to these worries is saving and having the tranquility of knowing that your savings are being taken care of. That’s where Housers comes in, with our diverse investment opportunities, we offer buy-to-let, buy-to-sell and development loan opportunities that provide monthly earnings. Monthly earnings means no worries, which is why Housers is perfect to offer you that tranquility that is much needed
We understand both the worry and the difficulty of saving, which is why today we’ve gathered the predictions from the country’s Real Estate experts so that along with Housers we can guide you on how to build a savings plan with your investments.
After the economic crisis in 2007 in Spain, the market experienced a downfall in the housing prices. Yet, for the past five years Spain has seen a continuing rise of prices that offer another hopeful year for this 2018.
Housing Prices
This year, housing is expected to rise an average of 5% with possible increases of 10% in some of the bigger cities, according to the latest interview from Expansion newsletter that interviewed the country’s real estate experts. This valuation in the market will occur as a great dynamism of the market, in which both purchase-sale as well as rental prices will rise. The experts have different predictions that can guide both investors and potential buyers for financial decisions this 2018.
“Prices will rise more than 10% in Madrid and Barcelona,” says Juan Riestra from the consulting agency Aguirre Newnam, who predicts that this year the housing price will continue to rise with averages of 6-7% and the big cities are expected to show double digit growth. “In regards to sale, we expect a growth of 15% conditioned by the improvement in the economy…” states Juan Riestra.
As shown in the graphs below, the BBVA research shows a steady increase in housing sales in the past few years, leading to the predict rise that is expected in 2018.
Influencing Factors
On a different note, the sale and rental platform, Fotocasa, predicts that new-built will play protagonist in 2018 as it has for the past quarter of the closing year. Beatriz Toribio, responsible from the studies department at Fotocasa, predicts that housing will continue to rise in prices if the economic context remains positive.
Other experts acknowledge the fact that the situation in Catalonia will continue to affect the market, as is the case of Jose Garcia Montalvo, Professor of Applied Economics at Pompeu Fabra University, who states that “any changes this year will be fueled in condition with the uncertainty occurring in the policy of Catalonia”. Regardless, he believes that Barcelona will have a great impact over the proportion of investors and buyers of apartments, and in effect, in the mortgage market. Which brings us to another important question, how much will the mortgage concession grow? “Around 15% and there will be a slight rise in mortgages that exceed 80% of financing on the total value,” responds Sandra Daza, the general director of the valuation company Gesvalt.
While Ferran Font, director of Studies of the real estate portal Pisos.com commented that, “The positive yields, the creation of occupancy and the rise in the price of rentals make it foresee that the purchases will be in good health this coming 2018 and continue their path upward, reaching the figure of half a million homes sold in 2018.” Meaning they will grow more than 10%, as well as the concession of new residential mortgages where, “The interest rates at historic lows and the decline in unemployment make us expect double-digit growth as has happened the last three years.”
Overall, with what seems as positive predictions from the experts in the market, we can expect everything from rises in mortgage concessions, higher valuation for properties and an exciting rise in new built that will impact the markets average and overall value.
All these predictions can give us a confident outlook to continue investing in the country’s top real estate projects at Housers and expect better than good yields.
Be sure to check out the current investment opportunities at Housers to begin benefiting from these predictions now.
All these predictions and responses were given to the Expansion newspaper in an interview regarding the Real Estate market for 2018. Source here.
