Bloomberg reports that Spanish banks are keen to lend to developers again as demand for new homes outstrips supply, especially in Barcelona and Madrid.
“We foresee that new supply won’t keep up with demand and that will translate into healthy house price growth for these new-builds,” Bertran said in an interview. “Now is the best moment to finance and we want to gain share in this market.”
Barcelona and Madrid are forecast to be the hottest markets in Europe, says the article:
As demand from buyers returns and financing costs fall, developers are building in Spain’s two largest cities where growth in house prices and rents is set to outpace the rest of Europe.
Madrid and Barcelona will lead future gains, according to Philip Wedge-Bernal, a London-based residential research analyst at Jones Lang LaSalle Inc. House prices in the nation’s capital rose 7.5 percent in the first quarter from a year earlier and 9.7 percent in Barcelona, according to Tinsa, Spain’s biggest property appraiser.