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We present the second edition of our Real Estate Sector Report for the second half of 2019, with our outlook for the sector in 2019-2020 and a new design. Here are the key messages from the report:

1. Outlook of Spain's real estate sector (2019-2020)

  • The real estate sector is entering a more mature phase of the cycle characterised by slower growth in house sales and prices. This slowdown will help the sector's expansion to become more sustainable and longer lasting.
  • Sales of new housing are gaining ground although they still represent a small share.

2. The rise in foreign demand: together forever?

  • We have analysed the demand for housing by foreigners which has grown non-stop since 2009, reaching similar levels to before the crisis. Although we expect this demand to moderate given the slowdown in European economies, there is great potential for growth in the medium term.

3. The rental market

  • Increasingly more people are renting their home. The rise in the number of young people renting their accommodation, the boom in tourism and sharing platforms are among the factors that have pushed up demand and thereby prices. Real estate firms specialising in “turnkey” or Build to Rent (B2R) projects are also entering the market.

4. The key aspects of the new Mortgage Act

  • We explain the key aspects of Spain's new Mortgage Act, vital to ensure the mortgage market functions appropriately and to improve the economy's financial stability.
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