What is the outlook for the real estate market in the second half of 2024?
The real estate market is going through a period of enormous dynamism in Spain, with more developments every day being made possible thanks to alternative financing with private capital, and products such as loans to buy assets, to buy land or developer loans. But what will the second half of the year bring?
The experts are quite clear about this. On the one hand, the shortage of rental housing supply will keep prices high. On the other hand, the increase in the mobile population of international students and young professionals who need to rent further strains this market and the local population is forced to compete with these more affluent tenants.
Moreover, the housing shortage will be a growing problem: the mismatch between supply and demand means that there is a need to build 600,000 additional dwellings by 2025, despite the fact that there are nearly 4 million empty or unoccupied dwellings.
Third, "build to rent" is consolidating. This new form of real estate investment, which focuses on the construction of homes specifically designed for long-term rental, has experienced a significant increase in demand and investment, reflecting a notable evolution in housing preferences and market behaviour, with particular impact in Madrid, Barcelona and Valencia.
With regard to house prices, they have been rising this year but only slightly. Experts do expect a slight rise in the coming months as the sector reactivates and more homes are sold. In this sense, and from the Business Development area of DEXTER, Ángel García maintains that "to the extent that the real estate market is very much alive, alternative financing will also be alive, and vice versa. Within our products and services as a financial operator in all sectors of the productive economy, most of the operations we carry out, and this will be the case in the second half of the year, are real estate financing," concludes García.
What is the outlook for the real estate market in the second half of 2024?
The real estate market is going through a period of enormous dynamism in Spain, with more developments every day being made possible thanks to alternative financing with private capital, and products such as loans to buy assets, to buy land or loans to developers. But what will the second half of the year bring?
The experts are quite clear. On the one hand, the shortage of rental housing supply will keep prices high. In addition, the increase in the mobile population of international students and young professionals needing to rent further strains this market and the local population is forced to compete with these more budget-minded tenants.
Moreover, the housing shortage will be a growing problem: the mismatch between supply and demand means that there is a need to build 600,000 additional homes by 2025, despite the fact that there are nearly 4 million vacant or unoccupied homes.
Thirdly, "build to rent" is consolidating. This new form of real estate investment, which focuses on the construction of homes specifically designed for long-term rental, has experienced a significant increase in demand and investment, reflecting a notable evolution in housing preferences and market behaviour, with particular impact in Madrid, Barcelona and Valencia.
With regard to house prices, they have been rising this year, but only slightly. Experts do expect a slight rise in the coming months as the sector reactivates and more homes are sold. In this sense, and from the Business Development area of DEXTER, Ángel García maintains that "to the extent that the real estate market is very much alive, alternative financing will also be alive, and vice versa. Within our products and services as a financial operator in all sectors of the productive economy, most of the operations we carry out, and this will be the case in the second half of the year, are real estate financing," concludes García.
