BBVA Research, the research department of the entity, foresees continuity in the recovery of the real estate sector in the coming years, with growth in residential construction investment of 3.2% this year, which will accelerate to 5.8% In 2018.
This is included in the report 'Situation Spain', prepared by BBVA Research, which provides for the continuation of the recovery of the real estate market in the coming years, based on the 'good health' of its fundamentals.
BBVA Research explains that both employment growth and positive but "less dynamic" growth in household gross income will continue to underpin investment in housing, with financial conditions that, despite the expected increase in the cost of borrowing Medium and long term, will remain "relatively favorable".
Likewise, the agents' expectations about the growth of housing prices "continue to consolidate" and areas of greater economic activity are beginning to show the "need for new housing".
Similarly, the ECB's study service envisages an increase in the Euribor before the ECB changes its monetary policy and initiates the rate hike by the end of December 2018.
As for credit, BBVA Research points out that the price of new credit has kept its downward trend, favored by the reduction of Euríbor, better liquidity conditions for banks, lower sovereign risk and the decrease in credit risk Faced by the entities.
However, the report notes that in some portfolios there is evidence of a "minimum threshold" in an environment of narrowing interest margins and changes in the structure of the class of loans.
On the other hand, housing acquisition rates show a "clear resistance to further decline" given the growing importance of fixed rate mortgages.
According to this indicator, which incorporates commissions, BBVA Research points out that Spanish mortgages are still cheaper than those in many European countries, such as France or Ireland.