CaixaBank has financed the Canary Islands development and real estate sector with 177 million euros during 2023, contributing to the promotion of new projects in the Islands through CaixaBank Real Estate & Homes, the entity’s business area that offers specialized services and products to companies in the real estate development sector.
Through this specialized division, CaixaBank has financed the construction of almost 700 homes in residential developments, accompanying the developers throughout the construction process, from the beginning of the work to the delivery of the homes to the buyers, who also facilitate the financing of real estate through the subrogation of the developer loan.
Manuel Afonso, territorial director of CaixaBank in the Canary Islands, has highlighted “the financial institution’s commitment to the real estate sector of the Archipelago and has influenced CaixaBank’s strength to boost economic activity and support entrepreneurs and developers in their projects.”
With Real Estate & Homes, the entity consolidates its support for the sector, one of the engines of the Islands’ economy, and helps promote it through its network of companies and centers specialized in the real estate business, with more than 100 professionals in the Canary Islands. which, as an added value, provide each client with the personalized and quality attention they require.
CaixaBank Research forecasts for the real estate sector
In its latest report for the second half of 2023, the CaixaBank Research research service pointed to the slowdown in the Spanish real estate market, but highlights that the pace of decline in the last months of the year was softer than anticipated, taking into account that The cycle of interest rate increases has been very rapid, reaching its highest level for 15 years.
With respect to housing prices, in the second half of the year the rate of increase increased again.
Home sales decreased in the last months of 2023, but are still above pre-pandemic levels, 16% more transactions compared to the same period in 2019. By segment, the greatest adjustment is concentrated in second-hand home sales. hand, compared to the sales of new homes.
The entity’s research service also emphasizes that the housing supply continues to be very limited and insufficient to cover the needs of the population given the demographic evolution. Thus, the number of new construction visas continues to be much lower than the net creation of households.
Despite all this, the resilience of the real estate market in the face of the sharp rise in interest rates would be explained by several factors that are supporting the sector, among which stand out a resilient labor market, significant immigration flows, the mismatch between a supply of new housing is low and demand remains high, and a favorable financial situation of households (household debt represents 50% of GDP, a value similar to that of 2003).
Likewise, CaixaBank Research also highlights that the high percentage of fixed-rate mortgages granted in recent years would be limiting the impact of the increase in interest rates on recently mortgaged homes.