Up to 1 million homes on the market will have been sold by 2016 says the head of BNP Paribas Real Estate
Given the current rate of sales of around 150,000 homes a quarter, the current stock of up to 1 million will have been sold by 2016 at the latest, according to Luís Martín, President of the consultancy BNP Paribas Real Estate in Spain.
Speaking at a real estate conference in Seville on the outlook for Spain’s battered real estate market, Martín argued that the key to recovery lies in lower prices making Spain more attractive for international investors. “Price adjustments have already taken place in the main European markets, which is helping start the recovery,” said Martín.
Other real estate professionals offered their insights into the market. According to Gabriel Rojas, VP of Gaesco, supply and demand will come balance sooner than expected, thanks to a dramatic fall in housing starts. “Along with the fall in demand you have to add the implosion in supply, meaning the residential market will soon find its equilibrium,” he explained.
Ricardo Pumar, President of Inmobiliaria del Sur, drew attention to the big problem of transparency in the market, saying it is incomprehensible that there are no reliable statistics for housing stocks.