Euphoria and thoughts in the real estate market
As we all know, the real estate market is euphoric again. The media talks about it day in, day out. It is true that there is strong demand and prices rise. We listen and read that there are increases of 20 to 30%. As always becomes widespread, we want to give our data of promotions that already have been in the market for more than a year:
- In Barcelona Eixample, the price has risen 10%
- In Badalona, the price has risen 13%
- In Sant Just Desvern, the price has risen 15%
- In Sant Cugat del Vallès, the price has risen by 20%
The reason that Sant Cugat has risen more is because it is one of the places where prices fell the most during the crisis. If anyone has the patience to look at the data we gave in 2012-13, you will see that we were down 70%. Already then we said that the price did not correspond with the services or the configuration of the city. What has happened now is that it has regained the position and the corresponded price.
And if we talk about rent, our average stands at an annual increase of 8%.
We have to take into account that in the matter of rent we came from 5 years of frozen prices and, what has happened in general, is that we are recovering the previous prices.
What worries us?
The overvaluation of second-hand floors to get the marketing.
We are concerned that, until the end of last year, the demand for new construction was composed, on the one hand, of buyers who had saved and could buy the apartment and, on the other hand, for investors, usually families, who bought for the future of their children.
This year has been incorporated into the demand the acquisition of a property in order to improve their usual 1st residence and, of course, in this case the valuation of the property to be sold is basic to define the price of the new one and, what we are seeing now, is that already properties are overvaluing. This leads to a future risk that, in previous times of euphoria, was mitigated because the banks gave mortgages without too much study and because the salaries rose. In addition, there was inflation. Is it the same now? I doubt it!
We are still very worried about the rent. The inconsistencies between the direction in which society moves and the lack of answers – not expected in the short term – provokes the frustration of a part of the population, especially for youth. The issue is important and can not be resolved from one day to the next. What a lack of vision and foresight that have the administrations of our country! They lost the possibility of generating rent and did not know how to take advantage of it. We repeat and repeat, to whom wants to hear, that it is no longer a problem of the city of Barcelona, but the metropolitan area.
We are concerned about the feeling that society has, that we all have, of little legal security, of little protection to the inherent property rights. It can not be that there is one occupation after another, it can not be what is happening with the tourist rental and the rights of the owners. Security and guarantees are basic for obtaining domestic and foreign investment; Investment is essential to solve the problem of rent.
Consistent with our principles, we have collaborated with the Generalitat and the Barcelona City Council. We believe that it is everyone’s commitment to contribute with ideas, data, etc. In order to try to find solutions to one of the most important social problems that the city of Barcelona and its metropolitan area have.