Real Estate sector as an investment alternative in 2017
The forecast for 2017 in reference to the real estate sector is a rise in its demand for rents and buying/sales.
Although this was one of the most affected sectors of the crisis of 2007, and that the homes were left aside as a desire for investment due to the paralysis of the buying and sales, the real estate sector, which has always been a safe market for investment, is a favorite of people who have additional money in the bank, and who don’t want to keep it static or risk it with investments in the stock market.
Thanks to the stability and resurgence of the economy, the year 2016 had re-blown the real estate sector, with figures that will increase in the year 2017, establishing it again as a real alternative, with 2016 gross annual yields of homes in 8.3%. Barcelona is one of the cities where there will be more demands in the real estate market after Berlin and Hamburg, at the top of the ranking, followed by Frankfurt, Dublin, Munich, Copenhagen, Lisbon and Stockholm.
The reasons for the increase in prices and demand for rental housing are the good prospects for rent growth and the improvement of the economic situation in Spain, coupled with the weakness of bond prices and the search for safe bets by some investors. Also, the revitalization of the zones and the generational changes act in a positive way when it comes to improving the real estate rental market.
The buying and sales will also gain strength in this year, 2017. The investment phenomenon will be in the rental of existing homes, in areas of demand. In Barcelona, rents increased 2016 with 17.4 €/sqm and month, 18.5% more than the previous year.
This 2017, the real estate market will continue to be marked by the scarcity of quality assets and with a feeling that the assets there are overvalued. This means that, the lack of housing makes it rent and sell everything there. In this context, many investors are prepared to sacrifice some profitability. On the other hand, the real estate sector remains an attractive sector because there is still a very large liquidity in the market with investors coming from Asia, the United States or the Middle East also that there is great pressure to invest.