These were the main conclusions of the roundtable 'The property market in Spain today and in ten years', held during the inaugural day of the Madrid Real Estate Conference 2007 (CIM 2007), which will run parallel to the Hall Madrid Real Estate 2007 (Sim 2007).
Thus, the manager of real estate in Spain U.S. bank Morgan Stanley, Javier Garcia, said that the property is' a sector winner 'and did not enter into crisis, but has begun a process of' normalization '.
In addition, he continued, the Spanish economic growth of recent years has given rise to large companies in the sector 'much more dynamic than European', which will be capable of adapting to a drop in demand to levels of between 400,000 and 500,000 homes annually.
For his part, chairman of Reyal Urbis, Rafael Santamaria, maintained this optimism, but lamented the constant exposure to market cycles' crisis and expansion '. Also believes that currently there is no market investment 'efficient' risk to which 'the administration has much to do'.
Within his optimistic vision of the future of the sector, Santamaria cited the massive access to the labour market, especially among women, as a factor that will promote mobility and therefore the market rent.
For his part, the president of Real Estate Chamartin, Carlos Cutillas, denied that the recent stock market falls in some property listed, or even the collapse of Astroc, are signs of a crisis in the sector, and assured that 'there is no bubble, but a break '.
In this sense, and in line with the other participants of the bureau, said that the residential market 'at all is going to sink', on the contrary, he continued, 'will see how to move upward again'.
However, qualified that the residential market comprises only 42% of the sector activity, which also includes the office market or shopping centers, which operate 'extremely well'.
In tune, the director general of Pinar Group, Joaquin Ros, marked as the only changes in the sector so far 'a small rise in the effort of families' and a' lower profitability of the market for buying a home '.
On the other hand, and despite the optimistic tone of all experts, both as Garcia Ros portend change in this context of a reduction over the next decade the number of promoters operating in the market mainly by the departure of those 'non-professional 'That had been incorporated into the wind of high returns.
This process, agreed, will be parallel to a stream of concentrations of medium-sized enterprises, while smaller ones will, in the words of Santamaria, 'highly specialized, efficient and profitable'.
Also, Cutillas talked about small companies' specialized 'and' positions railways', compared to a medium-sized enterprises will have to merge to face strong competition.
Experts are betting on diversifying supply of promoters and their internationalization, especially to emerging markets in recent accession to the EU. At this point, Cutillas invited companies to 'go out' abroad, although advised to do so with 'prudence'.
Then, most experts participating in the roundtable agreed on the need for developers to seek new sources of funding before the cooling sector.
Thus, Garcia explained that large companies must 'step forward' in the search for new forms of financing such as bonds or the stock market, after all this time using 'cheap money from the banks'. So instance highlighted some U.S. companies, which have their own sections mortgage.
Cutillas considered, for their part, companies must focus on capitalization to 'divide risks', though, Santamaria concluded that this is a very exposed to' falling fast, 'and considered preferable to turn in the housing market , Which is' more flexible '.
According to Ros, the financial system will continue to 'absorb' the effects of rises in interest rates.
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