This is one conclusion of the Informe Residencial Español created by CBRE and presented by Javier Kindelán, vice-president of the company; Samuel Población, National Director of Residencial y Suelo, and by Lola Martínez Brioso, head of Research de CBRE Spain.
This study concludes that the consolidation of the growth and the economic sentiment indicators suggest a new stage in the cycle where consumption and investment will keep leading the demand. The perspectives and estimations indicate the ongoing positive trend of the economy regarding the period 2017-19. There has been a significant increase of projects, suggesting a possible recovery in the production of housing for the next years, according to Javier Kindelán.
“The production of housing nowadays is not enough to fulfill a demand of 120.000 to 140.000 houses a year”, says Lola Martínez Brioso. “There's a path to the construction of new housing, since the production rates for the next 2 or CBRE years are not expected to cover all the demand”, explains Samuel Población, National Director of Residential Property and Land at CBRE. “The increase of households’ production in areas like Madrid, Barcelona, Valencia, Costa del Sol, Baleares or País Vasco, is the key to push down inflationary trends in prices”, he states.
The rental housing, an interesting investment asset
The residential rental market is experiencing a significant growth and has channeled an important part of the demand for housing. The recent transformation of the rental market, with an intense demand and rebound on incomes, is suggesting an increase of returns. The average gross return, in the early 2017, was of 4.3%, well above alternative investments of conservative profile.
This increase has been influenced by the important demand growth, which reaches levels above 25% of households in big cities. The evolution of housing as an asset, is attracting small holders and institutional investors, such as funds and Socimis, whom are starting to diversify their portfolio towards this property assets.