The real estate market has been on the path towards recovery throughout 2016. However, the last six months of this year have not been as booming as the first ones. Last year, 2015, a new cycle began regarding real estate. Facts and figures show that in 2016 the cycle has consolidated even though the growth rate has slowed down in these last months. Because of this, we must still be sensible and cautious.

2016: CONSOLIDATION

2006 was regarded as a “Black Year” for the real estate market. 2016 has been a good year and real estate improvement has consolidated. The terrible years of the housing bubble were a disaster for Spanish real estate and they should not be used as a reference.

MADRID: ONE OF THE MAIN COMMUNITIES REGARDING CONSTRUCTION

The real estate market of 2016 show that the Autonomous Communities of Castile and Leon, Aragon, Madrid and Catalonia are the ones with the greatest increase in the number of residential buildings. Castile and Leon have risen 70%, whereas Madrid 23%. In the Community of Madrid, the greatest problem is the lack of plots of land for building. And this fact is what worries experts most. This shortage of new housing has led to an increase in the prices. As a result, it is estimated that there is only one new house on sale per a thousand inhabitants. Catalonia and Extremadura have the same problem but even more aggravated. Therefore, the next real estate challenge is to create a plan which will allow the construction of new housing in order to meet the large demand of the sector.