The real estate sector is confident of recovering from the drop in sales transactions registered during the pandemic after detecting that “demand is still strong”, that most of the projects under construction are still underway and that prices have not suffered major drops. A good situation conditioned -in part- by the recovery of the international connections and the effect of the labor market among the youngest, a circumstance that leads experts to request the Andalusian Government to issue public guarantees that facilitate access to housing for this segment of the population.
These are some of the reflections heard this Tuesday during the presentation of the next edition of the Mediterranean Real Estate Show (Simed), where the president of the Group of Promoters of the Association of Builders and Promoters of the Province (ACP) of Malaga, Ignacio Peinado, has pointed out that home sales in Andalusia have fallen by 23%, to which must be added the “significant” decline in the projects that we will see underway in the coming months.
“I would like to emphasize that the current transactions are the pre-sales of months or years ago” and the effects of restrictions They will be palpable in the coming months, for which Peinado has warned that the immediate future of the sector will depend on the decisions adopted today.
The fall in operations has not been reflected -for now- in prices, which experience a year-on-year increase of 2.5 percent for the country, motivated in part by the “dynamism” of a market driven by a “desire from demand growing “arising from the pandemic.” Many people have realized that “their home is not useful for the new needs,” explained the director of Idealista in the South area, Carlos Rueda, who has added that they are looking for “larger residences, with terrace or garden, with oxygen”.
Rueda has stated that this concept of housing is causing a displacement of the population towards the interior, which is the main cause that in there are municipalities where prices have increased between 15 and 20%.
Demand “dammed”
The manager of Idealista trusts that we are facing a temporary crisis, because “demand is stagnant” and interest in acquiring a property remains intact, as exemplified by “Idealista’s traffic has increased by 40 percent.”
Ignacio Peinado stressed that, despite the fact that there has been a slowdown of the projects under construction, “they are not going to stop”, since 70 percent of the properties are in pre-sale.
Although the situation is not chaotic – “We are not facing a banking crisis, they continue to occur mortgages“, pointed out Carlos Rueda-, making forecasts” is complicated “and will depend on the recovery of international connections and the evolution of the labor market.
“There are promotions on the Costa del Sol where the level of sales by foreigners exceeds 80%”, explained the expert from the ACP of Malaga, who has stated that teleworking is an opportunity to attract new customers. A market that they understand will not be hurt by the news of activities of second and first residences because “steps are being taken” to tackle this problem.
Greater doubts are generated among experts by the influence of unemployment in youth and the obstacles that it generates when purchasing or renting a property. “The average age of buyers has increased” due to job instability, so public administrations must take a step by promoting Official Protection Housing (VPO) and offering legal guarantees to owners.
Peinado has insisted on the need for the Junta de AndalucÃa to offer public guarantees 95 or 100% of the price of the house so that young people – with a certain stability – can face what will be the most important economic operation of their lives.
At this point, Lopez, the delegate councilor of the Area of Territorial Planning of the Malaga City Council, has assured that the Malaga capital is the fourth largest city in the country, only behind Barcelona, Madrid and Bilbao, in number of public dwellings -3,900-.
The director of Simed, Paula Morales, has added that the edition that starts this Thursday at the Palacio de Ferias y Congresos de Málaga (Fycma) will bring together 70 companies and 17,500 homes will be exhibited.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
