Most experts agree on the fact that there will be a housing increase in 2019. According to the Appraisal Company Tinsa, Spanish real estate will grow between 5% and 7% during 2019. This means that Spanish real estate will continue to be on the same moderate path as in the last six months of 2018. In 2018, real estate deals increased around 10%. Some time ago, we wrote an article in this blog which stated that there would be good prospects regarding housing in 2018. And this happened. If we compare the facts and figures of 2018 with the forecast carried out by Tinsa for 2019, then we see a drop in housing sales. This is an understandable and logical situation as we underwent a huge growth during the previous years. We also wrote an article about the housing increase that would take place in Spain up to 2020. We stated that growth would slow down when getting close to 2020. This is the way things are. That is to say, the fall is entirely within normal. Many experts claimed that 2018 would experience an even more moderate growth as well as a drop in 2019.

MORE DEMAND IN OUTLYING DISTRICTS

According to Tinsa, in 2019, housing real estate deals will increase between 5% and 10%. Calculated this way, housing sales will amount to between  625.000 and 650.000. If we compare these facts and figures with the years 2006 and 2007, then we appreciate a substantial decrease as in those years the deals were 36% higher. Nevertheless, this does not mean that the 2019 forecast is not hopeful and optimistic. Tinsa states that throughout 2019, real estate deals will grow at a good pace and so will new housing after having gone through difficult times. It is important to pay special attention to the centre of large cities. Tinsa claims that housing price increase is reaching its peak in the centre of the main cities. Currently, this price increase is affecting the outlying districts and the areas further away from the city centre. According to Tinsa, this has happened because it is very difficult to find housing in large cities such as Madrid and Barcelona. Hence, many buyers have been forced to look for property in other areas and this has led to a corresponding price increase.

TWO REASONS FOR OPTIMISM

Tinsa has stressed that in 2019, two positive factors will take place allowing Spanish real estate to continue on the steady path throughout the year. These factors would be economic growth and job creation. According to this Appraisal Company, these two determining factors will increase housing demand, especially regarding new buildings which years ago were not too popular. Tinsa also states that young people will still find it difficult to purchase a house. This is very worrying because in the rest of Europe young people have access to housing much more easily. It is a failed subject in Spain.