One of Spain’s leading banks, Caixa Catalunya, has said that its stock of housing, taken on due to the recent financial circumstances, has almost completely been absorbed in some regions. The bank states that "we are very near the end, if not already finished". This has led to an increase between 3% and 5% on the price of some of its developments.
During a presentation giving an update on the housing market, they said that this recovery is also seen in the land market, in which the bank is also beginning to close operations in some regions through "an upturn in demand”.
In addition, Eduard Mendiluce (Director of Caixa’s Property Division) was convinced that Caixa Catalunya is not the only agent that has begun to raise prices. "There are increasing rates of sale and we are convinced that others are doing the same." It was not long ago that the financial institution offered discounts of between 15% and 20% in some of its developments, but he said "now housing prices have bottomed out.”
The study by the director of research at the institution, Josep Oliver, indicated that the adjustment has been "very fast", and in the case of employment in the sector, he considers that "a readjustment is nearly complete”, this is after the loss of around a million jobs.
However, the financial institution believes that there still are some assets to digest. First, although the property stock has almost been depleted in some regions, in others there still remain many that are unsold. In such areas, "the existence of a significant volume of potential demand and oversupply means we cannot anticipate an instant recovery of the housing market".
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