Friday, October 23, 2020
Home Residential Housing in Ma...

Housing in Madrid is “Fairly Valued”, According to UBS

Munich, Frankfurt, Paris, Amsterdam, Zurich, Toronto and Hong Kong top the index of cities with the highest risk of a housing bubble, whilst Madrid occupies 21st position (of 25).

Homes under construction in Madrid, with the Cuatro Torres on Paseo de la Castellana in the background.

Yesterday, UBS published its ‘Global Real Estate Bubble Index 2020’ report, which studies the prospects for the housing market in 25 cities around the world. Included in the list is Madrid, whose housing market is “fairly valued”, according to the index prepared by the bank.

The entity warns that despite the global recession caused by the Covid-19 pandemic, growth in house prices (adjusted for inflation) in these cities has accelerated over the last 4 quarters, a scenario that UBS considers is “unsustainable.”

Read the full article in Spanish.

B-Exclusives

The Aging Spanish Population: a Gold Mine for the Real Estate Sector

By 2050, 31.4% of the population in Spain will be aged over 64 years due to aging and a longer life expectancy. The supply of nursing homes for the elderly will need to double its capacity to keep pace.

The Housing Market and the Spanish Population: Where Will We Need Houses in 2035?

According to data from INE, over the next 15 years, Spain will gain 954,497 inhabitants, which will represent a population increase of 2%, with decreases in 9 autonomous regions and increases in 8 and a significant impact in terms of the foreign population in Spain.

The Yields on Housing Spark Investor Interest in Madrid and Barcelona

The growing phenomenon that is rental and the scarcity of other attractive investment alternatives are causing a boom in home purchases for investment purposes in Madrid and Barcelona, with varying returns depending on the district.

Residential Yields Reach 7% at the Height of the Pandemic

Investment in housing is gaining ground over other assets, such as the stock market and other equity products, with returns of between 7% and 8% in several Spanish provinces.

Latest news

Spain Comes Second in the European Ranking of Where House Prices Will Fall By The Most in 2020, According to S&P

The price of housing will fall in Spain by 1.4% this year but will increase again from 2021 with a forecast rise of 1.8%.

Cataluña Intervenes in the Market for Rental Premises to Curb the Covid Crisis

The Generalitat has approved a decree-law to allow it to intervene in the rental market to try to help commercial establishments with the economic fallout from the Covid-19 restrictions.

Round Hill To Seek Opportunities in Spain for its New Investment Fund

Despite the Covid crisis, the real estate investment firm considers Spain to be a good investment option due to its strong fundamentals for long-term investors.

Barcelona City Council Will Build 212 Prefabricated Homes

The municipality will invest 20.4 million euros and will build on four plots of land owned by the council.