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Real estate activity in Spain is 1/4 of the reached in the boom years

The recent economic crisis will keep taking its toll on the Spanish real-estate activity. According to a recent simulation carried out by the appraiser Euroval, this activity - taking into account several indicators such as the mortgages established, the revenue and expenses of construction, or the transactions carried out- is way behind the levels reached in the years of the residential boom.

Thus, and making 2004 the reference period (value equal to 100), the index for 2016 would be 20 at national level.

A key indicator, according to Euroval, which reflects this drop is the appraisals on rental houses, which despite the significant recovery registered in 2016, is still below the levels of 2006, of less than half: 1.399.200 appraisals in that year compared to 625.000 in 2016.

Another benchmark, that explains this situation, is the houses supply which, also in this period, shows a process parallel to the appraisals. Euroval analyses yet another indicator, the evolution of rental houses initiated and finished in Spain, to conclude that the comparison of both dimensions highlight the strong contrast between the situation before the crisis and now. If in 2008 the finished house rentals were about 536 600, almost twice the number of the initiated that year, in 2016 those numbers were 50 351 and 34 351 units, respectively.