Real estate activity decelerates, although it remains at pre-crisis levels

Real estate activity decelerates, although it remains at pre-crisis levels

Annual Evolution of IRAI - Graffic Made By Observatorio Inmobiliario

This is indicated by the Índice Registral de Actividad Inmobiliaria (Real Estate Activity Registration Index) – IRAI compiled by the Colegio de Registradores (Spanish Registrars Association), whose value was 106% and the weighted index, which compensates for inflation was 104.7%, both below the values registered during the previous quarter – 108% and 105% respectively.

Concerning the yoy evolution, IRAI registered during the third quarter the already commented 1.73% drop which reversed the continuous growth trend started in 2014, intensifying the growth deceleration which had been registered since the fourth quarter of 2018.

This yoy drop was based on decreases in terms of property areas, sales (-7.31%) and number of mortgages (-12.11%) and, in commercial construction (-2.43%) and real estate (-1.46%). These decreases could not be compensated by the price increases (3.86%) and the mortgage average (11.77%).

During the first nine months of 2019, the accumulated IRAI for 2019 still grew 1.87% due, mainly, to an increase in property areas (3.38%).

The IRAI is compiled by using, on one hand, real estate transactions and mortgages registered at the Registros de la Propiedad (property registrations) and, on the other hand, the commercial construction and real estate activity.

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