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Financial Sector Foresees Upsurge in Real Estate Property Sales in 2014

The Spanish financial sector predicts better performance for the real estate market in 2014, thanks to rebound in economy pushing the sales rates up in comparison to 2013.

According to the latest data from October provided by the National Institute of Statistics (INE), the sales of houses in Spain fell by 10%, with 22.770 operations entered in the Property Register. It is supposed to mark the sixth month of drop-offs.

Moreover, the number of the residential mortgages reached 14.704 in October, 23,2 % less in the annual rate.

Despite all the data, experts, analysts, consultants and the four great real estate companies: Aguirre Newman, CBRE, Jones Lang Lasalle and Knight Frank, believe that the year 2014 will witness an increase, both in sales and property prices, due to the fact that the Spanish real estate market prices have already reached the rock bottom level.

And even though Jones Lang Lasalle assures they will do it in 2014, and since then they will stabilize, the real estate portal Pisos.com estimates that the prices might still fall by 10, 11% that year. 

In the same way Bankinter claims that for the first time in five and a half year the real estate market begins to show fresh traces of the market revival, after the prices touched the bottom and started a stabilization stage which will give way to the recovery.

Sources of the Santander Bank share the opinion above and even if they do not foresee the prices tapering out, they still believe in their slight movement upwards in the statistical graphs in 2014.

The same sources consulted by Efe precised that the sales to the foreigners experience a real increase, already representing 18% of all. Also, the investment demand goes up, as the data of the number of transactions without mortgage shows.

What is more, the number of the housing starts which is at the minimum level of 350.000 per year, will speed up in 2014. (…)

According to Bankia, the economy is going to turn in 2014. The bank sells assets consisting in a great majority of assets belonging to Sareb, which are also supposed to rise in 2014.

By the mid November Sareb, created in order to manage the assets procedent from banks´ restructuring, sold 6.400 properties earning 2.200 million Euros of gross income.

Finally, the Sabadell Bank sources inform that the entity developes intensively in terms of sales and it closed the year 2012 with 2.316 properties sold. The number enlarges up to 2.900 at the end of 2013.

Source: Expansión