He believes that prices will not drop for the moment due to the lack of developable land and the “insecurity” caused by the Housing Law
MADRID, 3 Dic. (EUROPA PRESS) –
BBVA Research has warned in a recent report that the “high cost of housing” has begun to be “determining” for the investor attractiveness of the Spanish economy, especially in cities where companies with high added value linked to the industry expand the most. or the service sector.
But, in a report on the situation in Spain as of November of this year, the entity also warns that it does not seem that this situation will be reversed in the short term due to several factors that prevent there being more supply than demand for housing.
Among them are the lack of developable land, the shortage of labor, the “insecurity” for landlords derived from recent legislative changes, which together predict that prices “will continue to increase” in an environment where the supply “will continue growing” below demand.
It is worth remembering that this year the Housing Law was approved, which consolidated the cap on rental prices throughout the country at 2% by 2023 and 3% in 2024 with the intention of deflating the residential market.
However, according to data from the National Institute of Statistics (INE), the price of free housing rose 3.6% in the second quarter of the year compared to the same period in 2022, thus accumulating 37 quarters of increases. Within this group, new housing became more expensive by 7% and used housing by 2.9%.
With this panorama, BBVA Research considers it necessary to eliminate the bottlenecks that may be limiting the growth of the supply of housing at affordable prices, both for rental and purchase.
BBVA Research’s note on housing is framed in a section on supply problems in the industry, some services and also construction.
The organization sees a lower contribution of external demand to growth due to the environment of high energy and financial costs, the lower progress in the main trading partners and the lack of human capital.
Regarding this last point, the institution says that as the unemployment rate has reduced, companies “have found it increasingly difficult” to find workers with training in line with what they need. This “lack of qualifications”, the document points out, could also pose “obstacles” to the positive evolution of exports of non-tourist services.
