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INVESTORS SQUEEZE THE REAL ESTATE MARKET TO THE MAX

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According to the report of Pompeu Fabra University, investors gain more weight and are already 28% of home buyers. In the second half of 2016 sales made as investment reached 28.08%, surpassing the 24.65% of the previous year. One in three clients is an investor. We started to see this profile in 2013 and now it has reached its peak thanks to the fact that they find a high annual return, higher than 6,9%, when putting the house in rent.

Although in the last six months of 2016 mortgage sales increased, which now account for 67.2%, 32.8% of the remaining operations were paid in cash. The percentage of cash purchases is still relevant, hence the importance of the investor in the current real estate market.

The price goes up, but little

The market is in a good moment and both investors and end buyers know what they are doing. Although the price of housing used in Spain increased in the second half by 7.37% year-on-year rate, it should not be forgotten that since 2006 the price has fallen by 51.56%. This increase of 7.37% may seem a very important percentage, but it is necessary to contextualize it, since current prices are still well below those recorded in previous years. “We talk more about consolidation than about recovery,” says José García-Montalvo, professor of economics at the UPF and coordinator of the report.

In fact, if at the end of 2006 the square meter reached more than 3,500 euros, now stands at 1,690 euros. “People are buying because we are in a situation of attractive prices,” says the professor. And for the fear that things change. For the moment, that the buyer has less and less margin of negotiation on the final sale price of a house gives some clues. In 2012 the reduction between the offer price and the closing price was 14.2%, while it now stands at 6.2%.

Although in the price chapter, heterogeneity remains a constant in the housing market in Spain, according to García Montalvo. Barcelona, ​​Madrid and Alicante show higher rises than other populations, with a variation of 12.64% and 6.84%, respectively, while other cities such as Zaragoza, Valencia or Seville have a growth rate below 1.7%.