Resale homes are also seeing a price increase of 8%. These are all forecasts from the Tecnitasa Group.
The rental market remains under considerable pressure. Prices are rising, primarily because supply is decreasing. The reason? Many landlords feel insecure about the government's new policies and are choosing not to put their properties on the market, while demand remains strong.
Tecnitasa is clear on this: next year, the gap between supply and demand for housing will be even wider. Only about 100,000 new homes will be built, but demand will be more than double that, and immigration is driving it even further. Ultimately, this will cause prices to skyrocket, especially in areas with high demand.
José María Basáñez, president of Tecnitasa and Atasa, sums it up this way: it's becoming increasingly difficult for low-income families—and especially for young people—to find housing, whether to buy or rent.
In cities, where there's hardly any land left for construction, changes of use are gaining ground. More and more offices are being converted into homes, despite the legal complexities. High demand and a slightly more flexible administration are helping this trend move quickly, especially when the goal is to offer apartments at lower prices.
They're also converting vacant commercial spaces into apartments, including affordable rental options and social housing. This is how they're trying to provide some relief to a market that keeps tightening.
