Since late 2007, the real estate market collapsed in Barcelona, driven by the situation of the Spanish and global economy. Fact: when Barcelona recorded in the first quarter of 2008 more than 7,000 real estate transactions, the Catalan capital punishment to arrive in 1,000 in the fourth quarter 2013i. Prices slumped from 40 to 50%ii compared to those identified in the period, although the peak of the first quarter of 2008. So many countries, especially Spain, have the labels feature in general prices decline and real estate crisis and for seven long years. Today we see that the sense of fatalism gives way to that of the interrogation and even expectation. Does this collapse have finish its course? We distinguish an inverse trend of the real estate market? All questions begin to be asked and it does seem legitimate!
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Indices that do not lie
Beyond the desire to believe for many Spanish and Catalan owners, real clues are considered a positive trend for this year.
The first thing is to recognize that local demand from abroad. The first was the most affected by this economic collapse, the use of credit has become almost impossible for some years. The second was less affected, it contrary there was a 13.6%iii increase in the volume of transactions throughout the country since last year. Besides Spain was elected in 2014 “Country estate opportunities” by PricewaterhouseCoopers and Urban Land Institute (ULI).
But it is clear that the local demand picks the race! Extra motivated requests for visits to the greatest number, by the desire to take advantage of observed prices still very attractive and the fact that outsider see in Barcelona a dream city to buy their new residence. But beyond the numbers, is the rationalization of the observed demand suggests a revival in the market. New buyers see in the ownership of certain investment channel profitability, or at least that should be greater than that offered by financial institutions.Therefore, we find in this amplification of demands, an attempt to overcome the negative effects of the crisis enjoying this foreign manna. In some ways, local demand has become more professional.
Real estate sales out of stock
After a price drop every year between 9 and 11 %, we observe a slight recovery for certain areas of Barcelona. More precisely, according to annual surveys published by the City Council Housing and Housing, the price per m2 increased in the last quarter 2013 to 12% in the district of Ciutat Vella, 3% in Les Corts, 2% Eixample. In fact, the average price per m2 in Barcelona now stands at € 3,179. Catalan Municipal Council announced only 1% drop in prices in 2013 compared to 2012. Although the general trend seems to be stabilizing, but we especially note that prices of certain neighborhoods up for the first time in years!
Banking entities seem to believe
After several years of absence due to restructuring, the mortgage industry seems to come back at work. Indeed, the two mortgage offers fixed and floating rate are back from financial institutions. For proof, entities such as Santander and BankInter for example, have reported this year with strong campaigns on the benefits of online mortgage. Of course, this doesn’t actually show a turnaround in the housing market but can’t hide his appearance very encouraging. In January this year, there was an average difference for bank home loans Euribor + 2.11% , for loans online Euribor 2.31 % and other variable rate loans Euribor +2.66 %iv which gives a total average difference of Euribor +2.49 %, according to the real estate portal Catalonia Habitaclia “it’s something unthinkable in just one year”.
We can’t really talk of comeback credit because the criteria for obtaining them are still elitist and credit costs remain high. However, if we compare this scenario to that of recent years, it seems more than obvious that the banks seem to gradually regain confidence in the future of the real estate market in Barcelona.
For banking products which seemed to have disappeared in the spectrum of the real estate market, supply seems to wake up gently. This means there is also a clear trend change? It seems a little early to tell, but everything seems to believe that it is not crazy to consider the real estate market with optimism.
can you answer my question please ?
– The Barcelona market has grown from its first event in 2007 with 10 tables to a monthly market with over 32,000 followers on Facebook..
true or false ?