The real estate sector in 2019 seems to offer the maturity necessary to consolidate a gradual growth; the key to regenerate a market marked by the crisis. We review the main trends to gain a close understanding of the changes.
Closing the year in the real estate market, for a new beginning
The real estate market, with its mechanics of operation, is dynamic and unpredictable. Although it is true that, knowing its path, you can predict the trends and directions of an essential market in the economy.
In this sense, it is healthy to close the year taking stock of what has happened, and preparing for what may come, the objective? The constant improvement and stabilisation of a sector that has had a hard time getting out of the rut after the crisis.
Thus, next year will be marked by trends that have continued for a couple of years, others whose seed has emerged this year and will continue while some are based on unsound predictions.
To begin with, the market is expected to stabilise and mature for two years prior to a brief slowdown. In addition, the rental bubble derived from tourism will continue to be the centre of conversion in the main town halls and government.
With regard to buying and selling, the increase is consolidated, step by step. Although as always, the lack of land and scarce legislation are the sword of Damocles that endangers the overcoming of the crisis, with possible relapses.
And in general, the improvement of the market projects a positive labor panorama, with wage increases and demand for trained professionals.
In short, the outlook for 2019 is, fortunately, varied with challenges to overcome and errors to correct.
For this reason, today we review what awaits us in 2019. Don’t miss it.
Challenges that consolidate maturity to drive legislative changes
The year 2019 could be defined with a word: ‘stabilization’, where after a few years of uncertainty, it seems that the takeoff begins to settle, although as we said, with danger by the lack of soil. Even so, the trends seem to be as follows.
Increase in Investment
The increase in real estate investment seems to be settling in certain areas such as Valencia, Barcelona, Costa del Sol, Balearic Islands and Madrid.
With an epicentre in these areas, the trend could spread to other areas. For the time being, however, they would only occur in the main centres.
More jobs, more training
The growth of the sector aims at an improvement of the working conditions of the sector, and of the requirements to access it.
Gone is the time when actors eager for profitability without training and experience came to destabilize the real estate market. Fortunately, the sector has learned, and even legislation is beginning to change the landscape.
Thus, the commitment to talent, professionals with a technical profile and training seems to be the thread of decision in the trends of major real estate, not only in Spain, but also in Europe. This inevitably leads to an increase in the quality of service, and therefore salaries: almost 12% in 2019.
A mortgage balance in
Mortgage scandals with the consent of successive governments seem to have their days counted, with the new mortgage credit law, which promises to change the landscape in 2019.
Greater control of tourist rental
The rental bubble derived from tourist platforms, begins to have the preserve of governments, which begin to impose sanctions at the fiscal and administrative level, with the revision of prevention and control measures.
The price of housing is undoubtedly one of the main thermometers for measuring the health of the real estate market. Thus, in 2019 prices will continue to rise, but in a stable and moderate way.
With regard to second-hand flats, according to the Real Estate Index of Fotocasa, 2018 will close with an average annual price increase of 7.8%, the highest record since 2006, when it closed with an increase of 7.7%.
Buying and selling that consolidates
Buying and selling operations also show moderate growth. According to Tinsa, a group specialising in real estate appraisals, sales will increase by 5%.
Land will continue to be a headache
The lack of land to build in key and growing areas such as Madrid and Barcelona, coupled with the slowness in obtaining permits, is a factor that can revalue and trigger the prices of existing stock, and that would be the fuse that would propagate a new bubble. For the moment, dialogue between developers and administrations seems to be the solution.
Little by little, a greater awareness of a more sustainable sector, at all levels, is beginning to be established, a guarantee of stable economic and social growth, and a preventive against future crises in the sector.
In short, these are some of the trends and forecasts that mark several fundamental aspects of the real estate market. We will see how it develops.
Personalized Professional Training in the real estate sector to meet the challenges of 2019
The Real Estate Consultant Course (own title of Fundación Aucal) with 480 hours and nine months duration, allows the student to train as a Real Estate Consultant.
The syllabus offers an integral formation so that, at the end of the course, the student is able to carry out all the stages of a real estate management. The curriculum includes Real Estate Law, Real Estate Valuations, Marketing and Professional Ethics, among others.
With the help of a university professor who is active in the sector and who knows the reality of the sector, the student will be able, on their own or as part of a company: to direct, manage, make a real estate company profitable, draw up the real estate business plan, plan the promotion of the brand and the catalogue of properties and many other related responsibilities.
The first are those who quickly find the ideal house, the fact is that they spend little time, find it and buy it. It’s usually good value for money. These as a rule usually buy the best properties on the market because they are faster and agile.
The seconds on the other hand tend to spend too much time, sometimes months and some claim to have been looking for years and incredible as it sounds true. They claim to end up really confused and it is very logical because they see too many properties taking too long to make a decision which is usually late. Definitely the house they decided to buy has already been sold and is that the market does not wait, it is constantly recycled.