Developers bet on the holiday homes market to reduce their housing stock. The president of the Builders Association of Promoters of Spain (APCE), Jose Manuel Galindo, said today that they have submitted to the government a series of measures to promote the sale of holiday homes, about 250,000 and to reduce the "stock".
During the opening of the Real Estate Conference 2012, the president of the association demanded a thorough study of the holiday home market, which represents one third of the surplus of properties in Spain with a total value of 50,000 million euros.
This amount, he added, is similar to the resources the banking system should provisionally secure or similar to the new capital requirements that would be needed by the financial system, if there is a further deterioration of the real estate market.
APCE have also submitted to the Ministry of Development, the Treasury and other public administration departments, a series of proposals to create cheaper housing, develop a new land law, harmonize the regional legislation, include other housing policies and new proposals on taxation.
The future goal is to be sustainable, balanced and to have a difference between supply and demand much smaller than today´s, which has been enhanced by the long processes of production, by associating it with the financial market and the intervention of the administration itself.
In this sense, the association of promoters claims the weight it deserves as it considers necessary and "appropriate", given the drag effect it has on other productive activities and on the employment.
As an example he cited a report from the construction company Seopan which estimated that for every percentage point of GDP, 197,200 jobs are created, and given that the housing sector represents nearly 7%, this represents 1.4 million workers. He acknowledged that the sector is now a problem due to their relationship with financial institutions, so he demanded measures to open up the financial system to create a greater collaboration between the two sectors or to create a firewall which could be done by creating a "bad" bank that would withdraw from the balance of these financial institutions their real estate assets, not to damage them more.
From Alquiler Seguro, it’s CEO, Antonio Carroza, said to return the property "stock" to its natural use there are different ways: trying to sell the assets, give them away by transmitting them below the price, make them public housing, destroy or rent them. For this, he claimed fiscal reforms to help the banks and developers put their property surplus on the rental market.
Meanwhile, the president of real estate salon of Madrid, Antonio González-Noaín, was very positive as on its XIII edition, which opened on 19th of April and ended on Sunday 22nd of April, there were 150 exhibitors despite the current crisis.
Source:
Expansion.com
