Real Estate latest publications
The Institute's reclassification of 116,000 loans to the past-due portfolio, as they were considered to be outstanding, increased delinquency to 14%. This is an accounting change rather than a growing impairment of credit.
The unprecedented increase in unemployment, large-scale transition to work from home, and lower activity in many face-to-face service industries are leading to demand destruction, higher vacancy rates and rent declines in the Commercial Real Estate (CRE) sector.
For the first time in recent history, the Spanish economy is facing a recession in which residential construction is neither the trigger nor an exacerbating factor. The sector's fundamentals were in good health and many were still improving up until March.
The first known data from the real estate sector at the beginning of the confinement corroborate that Covid 19 has affected the sector. In March, home sales fell by 41% m/m, the highest since 2007. House prices fell for the first time in 21 quarters (-0.4% m/m) and residence permits decreased by 36% m/m.
Commercial banking leads intermediation of deposits and credit to the private sector. In the first quarter of 2020, the percentage of companies that received bank credit increased. Commercial banking has the solvency required to continue granting credit and overcome possible losses.
The mortgage burden is low, but should increase in 2020. FIBRAs and the real estate market in Mexico. Mortgage sector contractions in Mexico.
The Financial System addresses a number of challenges in the face of the Covid-19 pandemic: to keep an adequate financing flow, preserve appropriate liquidity and a correct operation of exchange rate and debt markets as well as to help intermediaries to cope with the management of market and credit risk.
The real estate market has not yet recovered the tone it had before the last regulatory reforms. Thus, despite the relatively positive determinants of demand, home sales fell in November, which did not prevent a slight rise in mortgages. Supply-side variables show weakness