Residential Property

Minister of Economy and Finance of Spain, Elena Salgado said that the "stock" of new housing, which lock the revival of the real estate sector, has ceased to grow in the first quarter of 2010 and throughout 2011 and did decrease by 20%. According to the Spanish government "reserve" of unsold new properties of objects at the end of 2009 amounted to 688,044 units, up 12.1% higher than in the preceding him in 2008. A forecast of the next in 2011, this figure drop to 550 000 houses. According to Elena Salgado, this stagnation "reserve" is connected with the demand, which is already "showing signs of revival," is rapidly approaching the total supply of new housing. Analyzing these data, the Minister of Economy and Finance said that further adjustments in housing prices to decrease should be expected. Nevertheless, Elena Salgado, has refused to discuss the statement as to whether prices real estate decline further, to match salaries, as stated by the Minister of Jose Blanco, who had predicted the problems associated with existing "stock" of real estate.

Minister of Economy and Finance noted that now the first time since 2006 there is a pause in the steady growth "stock" of residential property. Builders go on about reducing the "stock" company housing "Gulf Stream" and the site recalls that this stop increase in the existing "stock" of housing has already been predicted by developers who have repeatedly stated that the surplus real estate to increase this year will not be. According to the statistics that were presented representatives of the association of developers of Spain (APCE), reserves" of residential property in the first half even started to decline, from 686 143 sites at the end of 2009 to 685 195 sites in June this year – by 0.1%. In addition, the developers say, that must be borne in mind that this figure also includes those properties for which there is documentation of completion of works (repair, rehabilitation or reconstruction), which now has about 10% of the total. Source: Evrodomik