Mon. Oct 21st, 2019

Tenants become the new home purchase engine


The tenants who access the property they have become the new engine of market from living place, replacing the investors and to the shopping by replacement that they had dominated the transactions in the previous years, according to the report of the first semester presented this Wednesday by Amat Immobiliaris.

Guifré Homedes, general director of the firm, says that the type buyer is now 40-year-old families, who lived for rent in central areas, for example in Barcelona in the Eixample and have chosen to buy on the outskirts of the city. Thus, he explains, 85% of sales are made with a mortgage, when a few years ago they were only half. The so-called replacement purchase (those who move to a better home) has practically run out after five years of market recovery while investors, Homedes notes, no longer find attractive returns.





"The current buyer is very price sensitive: if the promoter raises it, sales are paralyzed," explains Homedes, who attributes it to the need for prior savings to give 30% of the entrance, since the mortgage payment in general is lower to the rent of your rent.


Trends

The average income rises to 1,200 euros / month and the term to rent a flat is doubled up to four months

Amat points out that prices have reached a ceiling in Barcelona, ​​or could even go down as transactions are going down, and have little travel in other areas, especially in new housing, “which is coming out in the upper range of what potential buyers can pay".

Likewise, rents have reached a ceiling, with rents at an average of 1,200 euros / month in the middle-class neighborhoods of Barcelona. “Before a flat was rented in one or two months and now on average it took four”. This is also producing an increase in the relinquishment of rental agreements: the tenants, especially young people, regroup and return to live with their parents or go to shared apartments. "Rents have reached a ceiling, because fewer and fewer people can pay them," he explains.

However, the demand for rent is still much higher than the supply available, explains Homedes, so the apartments whose tenants vacate "rent without problems if the price is adequate and the market could absorb many more."





The sector charges politicians for continuous regulatory changes

The sector charges politicians for continuous regulatory changes
(Eduardo Parra / EP)




Amat considers that one of the factors that prevent lower incomes is that there are hundreds of tenants who have bought on the plane and cannot go to their new homes because the promoters do not get the light high and that delays the signing of the deed and the delivery of keys. "We have seen promotions, sales and rental, closed for four months," he says.

Homedes believes that the new offer of rental housing has also been halted due to the legal uncertainty surrounding the sector, which retracts large funds but also small family investors. "Between royal decrees, decrees approved and not ratified, and announced and not presented, in total we have had seven changes of scenery in just over six months." This, he says, reflects that politicians do not know how the rental market works, and they use it for partisan purposes in a short-term vision. "In the long run this does not give any effective solution to the problem of access to housing we have."







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