Spanish housing glut will have gone by 2016 say BNP Paribas

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.

Comments

comments

2 thoughts on “Spanish housing glut will have gone by 2016 say BNP Paribas”

  1. adiep

    I have a feeling that grinding down the overhang isnt as simple as saying we sell x number a year and we have n number available. Many of these new builds were created at a time when people would buy anything, anywhere – money was no object so long as it was the banks.

    So now we have hundreds of thousands of urbanisations that are no where near schools, shops or any kind of employment — ignoring the fact that most are still beyond the reach of many average wage earning Spaniards.

    And of course, over the next few years, many of these empty properties located in half-full or empty urbanisations wont be maintained. So if they are anything like the ones on the hillsides of Manilva, half of the roads will go missing in mudslides and no one will do anything about it.

    Not entirely the kind of setting that makes you want to shell out 200k for a 2 bedroom apartment 🙂

  2. ubeda

    quite!! anyway most of the current sales are re sales and not the new build – Adiep is right – most of the new builds in the middle of nowhere will eventually full into disrepair !!

Leave a Reply

Profile photo of Mark Stücklin

About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.