The sale of homes in La Rioja will grow 16% in 2017, according to Servihabitat

The sale of homes in La Rioja will rise in this year and will maintain its upward trend during the next year, specifically, with 17.9% at the end of 2016 and 15.9% in the following year, as shown by the third report on the “Residential market in Spain” carried out by Servihabitat.

Image result for la riojaLOGROÑO, 6 (EUROPA PRESS)

The sale of homes in La Rioja will rise in this year and will maintain its upward trend during the next year, specifically, with 17.9% at the end of 2016 and 15.9% in the following year, as shown by the third report on the “Residential market in Spain” carried out by Servihabitat.

Specifically, the estimate for 2016 is that the year ends in the vicinity of the 445,000 homes sold in Spain, which represents an increase of 26% compared to 2015. As for La Rioja, the volume of transactions will register a year-on-year growth of 17.9%, staying below the national average, with more than 3,000 purchases.

From Servihabitat, the forecast that is made for 2017 indicates a growth of more than 12% with which the 500,000 units sold in our country will be reached. On the other hand, La Rioja will present a growth of 15.9% next year, surpassing the 3,500 units sold.

Among the engines of this advance, the most important mortgage credit grant, the increase in investment interest, with housing as a refuge value against other assets, the stabilization of prices and the improvement of job stability stand out.

Regarding the type of real estate, second hand housing continues to be the driver of the increase in the volume of operations, with values ​​close to 70% of sales, maintaining new construction transactions at levels of 30%, both in housing usual as in vacation. Almost 72% of the properties have a price lower than 150,000 euros.

Analyzing the new construction market in Spain, highlights the growth of 31.4% of homes started at the end of this year compared to 2015, reaching 61,984 units. The forecast for 2017 points to a continuity in this trend, which would increase activity by 20% compared to the end of 2016 to 74,381 homes.

With an increase of 51.5% in 2016, La Rioja will end this year with the start-up of the construction of 561 properties, a figure that will grow another 59.7% next year, positioning itself as the autonomous community with the best outlook in 2017, although it is the one that presents the lowest absolute figures in terms of the start of new promotions.

In La Rioja, the volume of stock with respect to 2015 has been reduced by 10.9%, one of the lowest rates in all of Spain that will have left a total of 8,705 unsold homes in 2016. For next year, it is expected that the settlement rate of these homes will be 14.4%.

Although the real estate panorama in the city of Logroño has experienced a significant improvement over recent months and the levels of new construction stock are not significant, in the rest of the locations, the market remains more stagnant and it expects to continue like this in the future, while still maintaining a significant concentration of unsold promotions.

As for the residential stock per inhabitant, La Rioja is the autonomous community that presents the highest level with a figure that exceeds 278 buildings per 10,000 inhabitants.

PRICE

Image result for priceAnother indicator that confirms the positive evolution of the market is the moderate growth experienced by the price of housing, which in 2016 stands at 4.6% over the previous year, and in 2017 it will increase around 4.3% .

La Rioja also joins this upturn, where the increase in the prices of real estate assets reached 9.5% year-to-year in 2016, the second highest in the domestic market, and, according to forecasts, another 6.2% will grow in 2017

The report prepared by Servihabitat Trends confirms the excellent opportunity to consolidate the rental in Spain. According to the data presented by the study, the volume of rental housing currently available in Spain is about 115,000, just over 10% of those for sale.

This offer is more abundant in coastal provinces such as Málaga, Cádiz or Alicante, and in cities with a strong student component, such as Salamanca. At the other extreme we find La Rioja, with only 400 rental properties available at the end of 2016, with an average price of 460 euros and a yield of 4.5%.

The last indicator analyzed is the total of purchases made in the country by foreigners throughout the year until the month of June is 18.4% higher than in the same period last year: 76,212 homes have been reached.

Six provinces account for 85.7% of acquisitions by non-residents: Alicante, Malaga, Almeria, Balearic Islands, Murcia and Las Palmas.

In La Rioja, the index of purchases from foreign capital is 7.5% in 2016.