The average price of housing will grow between 5% and 7% in 2019, according to Tinsa

Published on December 11th 2018

The average price of housing in Spain will grow between 5% and 7% in 2019, according to Tinsa's forecasts on the residential market for next year.

Tinsa expects the residential market to continue growing in number of transactions at "good pace", although "somewhat more moderate than in recent quarters", since, according to its forecasts, in 2019 the sale of homes will grow between 5% and 10%, up to 625,000 or 650,000 units, said in a statement.

The price increases are consolidated outside the main urban areas and the coast, "where until now the bulk of the recovery of values ​​from minimums has taken place". Tinsa also expects that mortgages will grow at a faster rate than total transactions and new construction will continue its path of recovery.

Specifically, the forecast includes an increase of between 10% and 15%, up to 265,000 or 300,000 mortgages granted.

On the visas for the start of work, Tinsa expects to grow around 25%, up to 125,000 visas. For Tinsa, in 2019 economic growth and the recovery of the labor market will continue, the "generalized" increase in residential demand or the reactivation of new construction after years of paralyzing practice, context that will influence the housing market to continue Good luck.

However, he believes that the reduction in growth forecasts, the difficulty in accessing housing for large sectors of the population, especially for young people, and the "probable increase in interest rates" may generate uncertainty. .

2018, a good year

Tinsa has ensured that the Spanish residential market has continued to grow this year in transactions, "prolonging the expansive pace of demand started half a decade ago."

Thus, he pointed out that the trend has been generalized in practically all of the territory, registering average variations that have hovered around 15% in many regions. However, it has highlighted that the number of sales is still far (36% below) from the maximum reached between 2006 and 2007.

However, regarding prices, Tinsa pointed out that prices have shown a geographically heterogeneous behavior, with the largest increases registered in the main metropolitan areas. Outside these and the coastal and insular territories, prices remain stable at minimum levels, showing "timid positive variations". Regarding the rent, Tinsa considers that the demand in the largest cities has greatly exceeded the offer.

"The rents reach maximums of the last years, although the growth rates in the links with higher recent increase show signs of contention," the appraiser points out.

Source: http://www.expansion.com

 

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