Market for new homes on road to recovery say developers

The market for new homes is on the road to a mild recovery, claims the G-14 group of Spain’s leading developers. Sales of newly built homes will continue “consolidating in the coming months” said Pedro Pérez, head of the G-14. Let’s hope this is not just wishful thinking by developers desperate for the market to start mopping up the glut of properties they created.

There is some basis for the developer’s optimism in the latest sales figures from the National Institute of Statistics. Sales of newly built properties increased by 7.6% from August to September, though on an annualised basis sales were down 20%.

“It’s been comforting to see sales rise for the 5th consecutive month, something that means we can say that the sector is recovering since it touched bottom in April,” Pérez told the Spanish press.

Sales are bouncing back thanks to lower prices and more selective mortgage lending by banks, argue the developers.

The recovery in sales will continue in the months ahead, says Pérez, in part because developers will make “every effort possible” to make prices more attractive.

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