Servihabitat – the biggest real estate servicer in Spain – forecast that house prices will rise an average of 6.3% this year.
Speaking at a recent conference organised by the developers’ association Asprima and CaixaBank (owners of Servihabitat), Juan Carlos Álvarez, the real estate business director of Servihabitat, forecast that house prices would rise between 6% and 6.3% this year on average, with “very appreciable increases” in some areas where there is now a shortage of new homes.
Álvarez would be referring to places like Madrid, Barcelona, and the most sought after areas of the Spanish coast, where demand is strong and the market starved of new developments in recent years.
Given this situation, Álvarez forecast 80,000 new homes built this year, a 13% increase on last year.
RENTAL MARKET GROWTH
The percentage of the Spanish housing stock given over to rental accommodation has doubled to 22% since 2000, with more room to grow, explained Álvarez. Cultural shifts in Spain, and increasing labour mobility that leaves people more likely to rent, will all be positive for the rental market.
These predictions are all in line with the latest report from CBRE on the Spanish housing market, forecasting, amongst other things, that house prices will rise 5.95% this year. So some of the biggest names in Spanish real estate agree this will be the year the property market recovery consolidates.