This article originally appeared at elEconomista.es, an online Spanish business news website. Click here for the original version of this article, in Spanish.
About 75 per cent of real estate executives believe housing prices in Spain are still falling, according to the latest poll conducted by consulting firm CB Richard Ellis, which surveyed 200 executives on the real state outlook for 2011.
However, foreign investment in local property in Spain has increased for the first time since 2003.
Right now, six out of 10 executives believe that the decline in housing market has already bottomed out in Spain’s main urban areas, but there are still huge adjustments to come on second homes, especially on the Costa del Sol, according to the data presented yesterday at ESADE business school.
On the other hand, half of the managers surveyed said they believed that financial institutions would increase their property portfolios this year, while 60 per cent said they thought banks were “not addressing” the right issues when it came to managing their real estate assets.
Regarding the investment market, forecasts indicate that returns will remain stable or slightly increase this year, with commercial real estate as the “main engine to recovery.”
Edited in English by José Luis de Haro and Julie Zeveloff.