According to the latest Real Estate Pulsometer, released by the Corporate Practice Institute (IPE), new constructions will begin to rise in 2013.
They also predict that Spain’s stock of unsold properties will be reduced by 23.6% this year, representing up to 611,250 homes.
The report also pointed to a growing trend in buying homes for cash and they predict the number of new mortgages taken this year will be 60% fewer than in 2006.
El Mundo reported that it was demand for property from non-residents that was key to enable the sectors recovery.
“To liquidate the ‘stock’ in the shortest time possible it is crucial and strategic to restore the confidence and legal security, in commercial and urban developments, with the European markets, especially the English, German and Scandinavian, providing the greatest possible transparency in public-private collaboration,” the report said.
The report also stressed that construction is currently at a level 80% below that of the peak in 2007.