Spanish housing starts are approaching 75,000 units for this year, 15% more than last year, and increasing sales are expected to further boost development, according to an industry sector report by consultants DBK Informa.
The report argues that the upward trend in the Spanish property market will continue over the short term in the main property market segments, driven by the “positive” economic situation.
It also claims that this trend will lead to more operators entering the market, “consolidating the presence of foreign investment groups”.
“Mergers and acquisitions are likely to continue over the next few months, which will lead to an increase in supply, although the sector will remain highly fragmented,” write the report’s authors.
In 2016, transactions handled by the 30 main property companies reached €7,033 million, 12% more than the previous year. The 10 largest had a turnover of €4,944 million while the figure for the 20 largest exceeded €6,200 million.
According to the report, this trend reflects the “positive” performance of property in 2016 in a context of “a favourable business climate, improvement in employment, and easier access to mortgage loans with an increase in mortgage approvals”.
During 2016, construction saw an upward trend and registered a 4.7% increase. Residential construction was one of the highlights with 9.9% growth.
The number of new-home starts went up by 38% to reach 64,000 units last year. Non-residential construction also “performed well” and registered an increase of 6.2% in the value of construction work carried out in 2016.
The market for office space is also on the rise. Last year it registered a decrease in vacancy rates, higher returns, and an increase in asset value.