Down. The Real Estate Activity Registry Index (IRAI) closed the third quarter of the year with a decrease of 6.7% compared to the same period last year. This index, prepared by the College of Registrars, combines transactions and mortgages to buy living place with the commercial activity of the construction and real estate sector.
Compared to the previous quarter, the IRAI has decreased by 2.8%, while the smoothed IRAI (free of seasonal factors) has reduced by 1.8%. Specifically, the value of the index stood at 119.7 compared to the 123.2 it reached in the previous quarter. On the other hand, the smoothed index stood at 117.3 compared to the 119.4 reached in the previous quarter.
The College of Registrars explains that the results of the general index mean giving continuity to the “downward trend” started in the second quarter of 2022, while the smoothed version of the index consolidates the change in trend that began at the beginning of the year. Both approaches represent a different scenario than that recorded in recent years, in which the upward path has predominated.
In this way, the registrars indicate that the slowdown in activity that began in the third quarter of 2022 continues, except for a moderate increase in the first quarter. Specifically, the registrars point out that in previous periods, they highlighted the continuous growth since the second quarter of 2020, with specific exceptions in some quarters.
This negative quarterly evolution of the IRAI in the third quarter has been due to a greater extent to the property area, which decreased by 2.9%, fundamentally motivated by a 4.5% drop in the number of mortgages, while the commercial area It also fell 2.6%, with a 2.7% decline in the real estate sector.
The data from the College of Registrars also reveal that in the second quarter of 2021 (22.09%) the largest increases are observed, slowing down very significantly during 2022, reaching 2023 with progressively more negative rates, of -1.53% in the first, and -4.68% in the second.
Finally, in relation to the components of the evolution of the IRAI shown in the annual data at the end of the third quarter, the fall was mainly due to the decrease in the property area (-9.1%), with a significant decrease in the number of mortgages (-21.9%), also accompanied by a drop in the number of sales and purchases (-15.3%). In the area of commercial companies there was a slight increase of 0.7%, due, above all, to a growth of 1.1% in the construction sector.