Spanish Recovery in 2013?03/05/2012
According to the seventeenth edition of the Real Estate Pulsometer prepared by the Corporate Practice Institute (IPE), they are optimistic that the ‘stock’ of unsold homes in Spain will be reduced by 23.6% in 2012,
by up to 611,250 homes, and they anticipate that new construction activity will begin to recover in 2013.
On the demand side, the report notes a growing trend of home sales for cash, and in 2012 they expect to sign only a third of the number of mortgages that were contracted in 2006. In parallel, they anticipate promoting some 100,000 homes annually over this year and next.
El Mundo reported that the key to the rapid absorption of the ‘stock’ and the sector’s recovery will be due to the demand for housing by non-residents.
“To liquidate the ‘stock’ in the shortest time possible it is crucial and strategic to restore the confidence and legal security, in commercial and urban development’s with the European markets, especially the English, German and Scandinavian, providing the greatest possible transparency in public-private collaboration,” added the report.
In any event, the report stresses that construction activity has been reduced to 20% of that achieved in 2007.
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