With only approximately 60,000 new homes completed in Spain last year – which compares with the UK’s 250,000, Germany’s 300,000 and France’s 400,000 – the country’s homebuilding industry is currently in a healthy state, according to Aedas Homes’ CEO David Martinez.
“There is no demographic justification for such a big gap,” said Martinez. Talking to Real Asset Insight’s Richard Betts he said that the country came out of the previous recession later than other countries so the market is undersupplied and now also has fewer players.
He also pointed out that it is more difficult for younger people to save for a deposit to buy a house so there is an increasing need for private rented sector property too. But there is no institutional PRS market in Spain yet. “It is absolutely necessary. The younger generation and families want to rent apartments but they are difficult to find in the main cities.”
“There is clearly an opportunity there to create big portfolios,” he said.
Click on the video above to watch the full interview or listen to the podcast below.