Madrid and Barcelona get rid of more than 93% of their housing stock in the last two years

Published on June 1st 2018

In both cities the offer barely adds 4,114 new homes. Only 9.7% costs less than 150,000 euros in Madrid, while in Barcelona there are no promotions for this amount

In the cities of Madrid and Barcelona, ​​the two main real estate markets, there are barely 4,114 properties on sale in new developments (9,920 in both provinces) and the bulk has been put up for sale in the last two years. In addition, it is no longer finished houses, as in the years of crisis, but promotions under construction or without starting that are offered on a plan and whose prices have grown so much since 2016 that the supply of homes of less than 150,000 euros is currently insignificant.

Given the shortage of works, the supply of new housing could be exhausted in eight months in the case of the Madrid region (nine in the capital) and in just under 14 months in the Catalan province (12 months in the municipal area), something that will accelerate the price increases of recent months, indicate in ST Sociedad de Valuation, which has drawn up a census of pending promotions to sell.

In the last two years, both real estate markets have turned around and not just because of the rise in prices. In the Community of Madrid, the stock of new housing has been exhausted by 93.7% since 2016, according to the Appraisal Society. The appraiser has recorded a current offer of 6,319 homes, representing an increase of 15.8% over 2016. This figure includes 346 homes that were already on sale in 2016 and that were not sold, plus 5,973 new units .

More marked has been the absorption in Madrid capital, where more than 97% of the offer has been released in two years, so that there are now 3,067 homes for sale (3,007 of them are new units), 42.1% with respect to 2016. 98% of its offer is made up of real estate for sale in the last two years.

In this new real estate cycle, the offer of finished properties has lost weight, representing 7.5% of the total stock in the Community of Madrid, compared to the 58.1% that it entailed in 2014. 60.5% of the offer registered now is housing without starting and 32% housing under construction. In particular, the current offer of finished housing has been reduced by 75.8% compared to the 2016 census and that of real estate under construction has grown by 54%, while the supply of new homes has increased by 75,1%.

 

Source: El Pais

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