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There is no real estate “boom” according to AEV
16 July 2019 | Observatorio Inmobiliario

The «high» amount of transactions and the «intense» growth rates are behind the idea that there is a «real estate boom», according to AEV (Asociación Española de Análisis de Valor – Spanish Appraisal Association) in its X Observatorio de la Valoración.

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 «The idea that there is a real estate boom comes from observing a high amount of transactions (almost 582.000 in 2018) and intense growth rates (4% yoy within second hand houses), but it is not compatible with the construction net results», explains the report.

The report shows that the real indicators concerning housing construction do not support this idea, since the construction cycle maintains an almost flat growth, stagnated since the third quarter of 2018, and with an average of 6.500 dwellings starting construction per month.

Teacher and in charge of the Universty of Alicante’s Applied Economics Department, Paloma Taltavull, the author of this report, considers that «the diagnosis hasn’t changed» when compared to previous reports, and that is explained by the «scarce productive structure which survided the catastrophe of the economic crisis» and by «an insufficient capacity to buy homes».

Nevertheless, the report is optimistic and highlights that «in 2018, the influx of better conditions in 2017 contributed to an improvement in the production numbers and could potentially lead to a slow but systematic expansion path».