BBVA estimates an increase in housing investment of 5.3% this year and 5.7% in 2019

BBVA estimates an increase in housing investment of 5.3% this year and 5.7% in 2019

 

This is included in the «Situation Spain» report prepared by the entity's study service, which indicates that investment in housing will be consolidated as one of the most dynamic demand matters in the coming years, supported by the "solid recovery" of its reasons.

The report explains that the economy will continue to create employment in the next biennium, which, together with favorable financing conditions, will encourage domestic demand for housing. In addition, the higher expected growth in neighboring countries will maintain the relevance of foreign demand.

All this in an environment of still low interest rates that will maintain the cost of financing at "relatively low" levels, so BBVA Research believes that entrepreneurs in the sector will continue to launch new projects, despite the pressure that results from the uncertainty of economic policy.

Thus, after closing 2017 with a 4.3% rise in construction, it predicts a rebound of 3.4% in 2018 and 4.1% in 2019, while investment in housing, which rose 7.6% last year, it will increase by 5.3% and 5.7%, respectively.

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