Are house prices in Spain expected to fall?

The Real Estate Market, after showing its first signs of tiredness in 2006-2007 and subsequently got collapsed in 2009, seems to be slowly recovering after more than five years of crisis. In 2014 real estate market has raised regarding drought operations and transactions of past years.

It is expected that in the next 2-4 years we see a slight recovery in the sector, although still far from the average cruising speed to be achieved from 2018, when we get ride of much of the awarded, built and completed asset.

Although timidly, the market is starting to wake up, demand in certain areas (Financial Centers and Coast) and in what segments (commercial, residential, office, hotel) begins to reclaim promote active in areas of limited supply.

Furthermore, 2014 was an extraordinary year for the Spanish tourism industry, with record figures in number of tourists landed in Spain and average expenditure per each tourist. This situation has had a great impact on two real estate segments:

• Hotels. Large operators launched strategic plans for replacement and rehabilitation of its real estate encouraged by regulation.
• Residential Second Home in costa, encouraged by strong northern european demand with purchasing bargains and cultural and environmental -sol-, unique heritage in Europe.