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The recovery of the housing market

The recovery of the housing market

6 Feb 2017

The real estate sector lives a few years where the recovery from minimums is consolidating. In fact, 2015 marked the record of real estate investment while 2016 maintained the positive trend, although registered less investment in tertiary. Meanwhile, the residential sector evolves at a slower pace than the office, logistics and retail market.

This year that will begin will be the consolidation of the recovery of the housing market, according to the Barometer of Real Estate Trends prepared by CBRE. The study states that 50% of respondents believe that house prices will grow between 3% and 6% by 2017.

On the other hand, experts say that the absorption of housing will increase smoothly, while developers and real estate will once again be the protagonists of investment in the sector.

"Rehabilitation is where there will be more opportunities in 2017 within the residential segment followed by housing with new construction, so the number of cranes should follow the upward path already started," said Adolfo Ramírez-Escudero, president of CBRE Spain.

Investors are seeing in the renovation and rehabilitation of old buildings in the center of the cities an opportunity to add value in order to bring to market higher quality products. 19.8% of those surveyed said that rehabilitation would be aimed at luxury homes, while another 11% would diversify towards rent.

Meanwhile, for CBRE demand for new housing will grow to 180,000 homes between 2016 and 2025, led by Madrid (24,591), the second residence in Malaga (10,626) Barcelona (7,904).

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