Post by account_disabled on Mar 13, 2024 9:41:10 GMT
BBVA Research has anticipated that investment in housing will continue to be limited by supply restrictions and changes in regulation, following the recent approval of the Housing Law in the Cortes Generales and its entry into force.
In the 'Spain Situation' report, BBVA Research economists have warned that the new Housing Law does not encourage the construction of new construction , both to be offered for rent and to be acquired.
On the contrary, they consider that the law introduces Phone Lead disincentives by facilitating the limitation of prices "by introducing uncertainty and increasing regulation, especially for large homeowners (which goes against the efficiency of the sector and its competition); or by increasing rigidity in rental contracts," they explained.
Lack of legal security in renting
Despite everything, BBVA Research does not expect that the approved fiscal incentives, "or punishments", will change the panorama significantly, since the "lack of full legal security" for owners will continue to be the most important reason behind a reduced supply of housing for rent.
"Announcements to increase public housing inventories are welcome," they have claimed. However, they have warned that there are doubts about the sufficiency of the resources allocated or about the suitability of the location of the assets that will be acquired or where the public works will be developed.
BBVA Research raises its growth forecast for Spain to 2.4% in 2023
BBVA Research has raised its growth forecast for Spain's Gross Domestic Product (GDP) to 2.4% in 2023, compared to the 1.6% forecast in March, although it has cut its estimates for 2024 from 2.6% up to 2.1%.
According to the latest 'Spain Situation' report, this improvement in projections in 2023 is explained by the reviews carried out by the National Institute of Statistics (INE), but also by a "surprising and positive" evolution of exports , which compensates for the sluggishness of domestic demand.
BBVA Research's new projections for 2023 exceed by three tenths the estimates that the Government sent to Brussels within the framework of the Stability Program, where the Spanish economy is estimated to advance by 2.1% this year.
In the 'Spain Situation' report, BBVA Research economists have warned that the new Housing Law does not encourage the construction of new construction , both to be offered for rent and to be acquired.
On the contrary, they consider that the law introduces Phone Lead disincentives by facilitating the limitation of prices "by introducing uncertainty and increasing regulation, especially for large homeowners (which goes against the efficiency of the sector and its competition); or by increasing rigidity in rental contracts," they explained.
Lack of legal security in renting
Despite everything, BBVA Research does not expect that the approved fiscal incentives, "or punishments", will change the panorama significantly, since the "lack of full legal security" for owners will continue to be the most important reason behind a reduced supply of housing for rent.
"Announcements to increase public housing inventories are welcome," they have claimed. However, they have warned that there are doubts about the sufficiency of the resources allocated or about the suitability of the location of the assets that will be acquired or where the public works will be developed.
BBVA Research raises its growth forecast for Spain to 2.4% in 2023
BBVA Research has raised its growth forecast for Spain's Gross Domestic Product (GDP) to 2.4% in 2023, compared to the 1.6% forecast in March, although it has cut its estimates for 2024 from 2.6% up to 2.1%.
According to the latest 'Spain Situation' report, this improvement in projections in 2023 is explained by the reviews carried out by the National Institute of Statistics (INE), but also by a "surprising and positive" evolution of exports , which compensates for the sluggishness of domestic demand.
BBVA Research's new projections for 2023 exceed by three tenths the estimates that the Government sent to Brussels within the framework of the Stability Program, where the Spanish economy is estimated to advance by 2.1% this year.