The IMF predicts the termination of falling of real estate prices in Spain
Published: 13/01/2015
The International Monetary Fund (IMF) considers that the cycle of falling of the market of the Spanish real estate is close to the end, and reduction of prices or already came to the end, or will come to the end soon.
"Indicators testify that real estate prices in Spain, Ireland, Denmark and the Netherlands were at the lowest end of the resources or just about will overcome this mark", - experts in the last report on restoration of the market of real estate note. They also warn about existence of some uncertainty and risks which can negatively influence this process – in particular against growth of rates on the credits which now are at abnormally low level.
"In some countries, for example, of Spain, surplus of new housing – in particular in suburbs of large settlements – can lead to that the balance between the markets of rent and purchase and sale of housing will be established a bit later", - experts speak. They also note that "in Ireland and Spain the blow appeared more serious as the period of blossoming was longer, and falling of the prices was followed by growth of unemployment rate and a suspension of activity in the sphere of construction.
Experts recognize that, despite the imbalance caused by crash of the market of real estate in Spain measures for restoration of activity in sector and to prevention of repetition of abnormal growth were taken. However, they suggest to go further away and gradually to cancel tax privileges for owners of mortgage loans, to advance the market of rent and to carry out tax reforms, and also to fight against a lack of liquid means within pension payments.
