Posted December 26, 2015 & filed under costa del sol property news marbella property news spanish bank repossessions spanish banks spanish real estate news -and- lifestyle
The surplus of unsold new homes in Spain reaches 389,000 units, according to a report by Tinsa, a figure in two and a half years the time needed to absorb the stock. This means that the reference date is the first half of 2008 and that demand will be about 150,000 new homes a year...
Their statistics show that the property stock in Spain currently corresponds to approximately 25% of all apartments that have been built since the boom, which means that one in four houses is for sale.
The x-2015 housing stock Tinsa report highlights that despite the crisis have built 1.56 million homes since 2008 in Spain, a figure equivalent to 6.4% of the total housing stock.
At present, is 389,000 new homes empty, with the provinces of Madrid, Valencia, Murcia, Barcelona and Alicante accumulating the greatest number.
However, if we set aside the absolute number of vacant homes and look how represent the volume of finished houses we discover that Almeria (38.9%), Cuenca (37.1%), Castellon (36.1%), Toledo (34.7%) and Murcia (32.7%) account for the highest rates of empty homes. Thus, according to Tinsa, the main problem is how much of that stock represents the rate of homes built in each zone.
Tins report recalls that the cessation of purchases during the crisis has led to the insolvency of a large number of developers, unable to cope with the commitments arising from loans assumed. In this scenario, financial institutions have emerged as new property owners and as second derivative, the SAREB and Servicers banking (Altamira, Beech, Aliseda, Solvia,...) emerge as new industry players. In fact, they control 86.1% of the total.
The appraisal report says that the vast majority of the stock is on sale (91.2%), while another 8.8% is intended for rental. The main use is for the first residence (81%).
Here, Tinsa ensures that “there is a correlation between the use of this formula and the ratio of stock. It is in those locations where there is a higher percentage of empty new house built on the marketing rent is higher. In areas where the unemployment rate for new housing is over 50%, the average rental rate touches 12%. And, conversely, in locations where the stock is less than 10% of housing built, the rental rate does not reach the 6% “.
Another telling statistic is that one is out of the stock market: that is, neither is for sale or rent, and residential Tinsa bag that stands at 3.9%. “Not all the outstanding stock sale has hung a poster. It is difficult to estimate how much of the new housing empty bag is not marketing, but it represents a relatively small part of the total. According to the situation in the Spanish cities with largest stock of new buildings for rent or sell in this market situation would be found out at around 4% of the stock, “he explains.
The appraiser says there are many factors that explain why the market there are still nearly 400,000 empty homes. Among them are the insolvent demand, poor location of the building, high prices and lack of consolidation of the environment.
The appraiser says the general feeling is that prices are stabilizing at a time. A theory that shares the consensus of experts.
So much so that the forecast for next year is to contain prices by more than half the stock. Specifically, Tinsa think the price of 41.3% of the surplus of housing will remain stable, while another 22.5% would experience a slight rise of between 0% and 3%. In contrast, 19% will drop to 3%.
Make clear what the report’s conclusions is that there will be large declines, or large increases: just 1.8% of the stock could fall more than 6% and a 2.3% rebound above that level.
The high demand for Marbella luxury property in and the Costa del Sol keep pushing the prices higher and higher every month, so if you would like to sell your property in Marbella and the Costa del Sol, please do not hesitate to fill the form on Contact Us or give us a call on +34 952 811 010 Today!
Source: Idealista