Notes

The Real Estate Sector Bets On The Rental Market And Calls For Greater Professionalization

The Spanish real estate sector is committed to the rental market as a trend for the future with the arrival of the 'millennials', although it has pointed to a need for greater professionalization in this segment for a more intense development and for Spain to approach European shares.

Speaking to Europa Press, the CEO of Anticipa Real Estate, Eduard Mendiluce, explained that the 'millennials' want to have flexibility both in the financial and labor aspects, an increasingly widespread philosophy: "The rent has come to to stay and it is being the alternative most demanded by families, not only due to a drop in purchasing power after the crisis, villas for sale in nueva andalucia but also to a structural change ".

Mendiluce has warned that Spain is still far from the figures for the rented housing stock in Europe, which is around 35%, given that Spain has a still entrenched property culture: "We have a long way to go, but precisely the bet de Anticipa is to become one of the main residential rental platforms in this market. "

For his part, the general director of the Real Estate Business of Servihabitat, Juan Carlos Álvarez, has indicated to Europa Press that in 2016 22.2% of the Spanish population lived in rental, according to Eurostat data, a figure that has experienced a notable growth during the last decade, due to the greater geographical mobility, the roots of the rental culture among the youngest and the impact of tourism: "With all these factors on the rise, we believe that residential rental will continue to grow and has come to stay".

From Solvia, its general director, Javier García del Río, has pointed out that the weight of rent in Spain continues to be low, standing at around 20% compared to 40% in countries such as France or Germany, although "the new generations are tending in a majority way towards the rental scheme, although in many cases more by obligation than by choice ".

"The uncertainty generated by the future of pensions is another of the arguments that inclines Spaniards towards buying a home as a form of saving for retirement," added García del Río, who argued that greater professionalization is necessary of the residential rental market - currently more than 90% of the supply is in the hands of individuals - since the entry of professional operators would provide a more efficient market, avoiding upward tensions in rental income such as those that are being producing in some neighborhoods of Madrid and Barcelona.

2017 has been a positive year for the real estate sector, since according to the Anticipa Study on Housing Market Outlook 2017-2019, the current year will close with about 481,000 free housing transactions at the state level, which means 10.1% more than in 2016, and in Catalonia the figure reaches 82,000 units, 10.8% more.

Regarding prices, Álvarez has pointed out that they have maintained a line of strong increases, driven by the pressure of demand and market activity, both for sale and for rent: "The trend for the future is very similar, if well with some moderation in growth rates. "

BULLET CYCLE BUT WITHOUT REAL ESTATE BUBBLEAnd it is that the three real estate agencies coincide in stating that the residential sector has started an upward cycle and given this premise it is worth asking if there is a risk that a real estate bubble will reappear: "What we have is a very unequal situation in the market. In the area of ​​rental there have been notable increases, especially in large cities such as Barcelona or Madrid, due to the lack of land, "said Mendiluce.

"Therefore, in some localities there is a great demand that results in price increases, but we cannot speak of a bubble. A possible solution would be to encourage more rental supply in the market through aid mechanisms such as rehabilitation," he has added.

From Solvia, García del Río has indicated that the "star product" of 2017 has been the new construction, with a clearly increasing demand especially in the city of Barcelona and in other municipalities of the metropolitan area, such as Badalona, ​​Sant Cugat and L ' Hospitalet de Llobregat.

In fact, he continues, another symptom of the sector's recovery is the reactivation of the second residence: "Solvia has sold new construction developments at a very good pace in Platja d'Aro (Girona), Altafulla (Tarragona) and Llançà (Girona)".

CATALUNYA EFFECTNeither Anticipa Real Estate nor Servihabitat have noticed that the Catalan independence process has affected the residential sector, although Mendiluce has found that "it is clear that in times of uncertainty the market can retract, so we need a stable political and economic environment, a legal certainty that allows to continue promoting the confidence of investors and the citizen in general ".

In fact, Álvarez estimates that sales will grow by 18.9% this year, with more than 79,000 operations, and another 6.5% in 2018, exceeding 84,200: "It is true that it is difficult to assess the impact on the market in a moment in which there is no inflection in it, but from Servihabitat we can only affirm that we are in full growth ".

From Solvia they have noticed the effect in October, when transactions in the retail market were reduced by 15%, a situation that has been reversed as of November.

"In our sales to companies and investors there have not been significant alterations either, since these are concentrated in clients who are well-established companies and who know the environment. Undoubtedly we monitor the possible impact continuously, but we do not observe the evolution with concern", they affirm.
My Website: https://marbellacontemporaryvillas.com/