Rob HorganHOUSE prices are still significantly above the historical average for Spain, according to the International Monetary Fund.
Data published in the IMF quarterly Global Housing Watch report shows that prices are still standing at 15% above the average, according to the House Price-to-Income ratio.
This ratio is calculated by dividing the average price of housing in the area, by the disposable income of households.
Japan has the cheapest housing in relation to the income of its population, closely followed by South Korea.
In contrast, France in under the watch of the IMF for its high housing prices, with Belgium, Australia and Canada also recording very expensive housing in relation to income.
Does the IMF mean they need to fall further? House prices already dropped 4.2% in September year on year according to Tinsa.
Prices dropped, can’t be true. Some property “experts” say they have increased.
I agree that they ar still a bit high. The rental yield is still low compared to other areas or countries. The only get to get good yield is short term rentals.
The good news is that we can help with that!
I think both prices and rental yields are very low compared to the UK, mainly due to lack of demand.
Ernesto, I would want to check out the new holiday rental licensing laws before deciding if short term rental is a good option. Poor legislation is likely to make it unviable.
I agree that a poor legislation could make it unviable. But a good legislation like the one in Madrid or the one in the Baleares, where they issue a license and a minimum standard is required would be great for the holiday letting market in Andalucía.
If you are really interested in the subject and want to learn more about the future legislation, you can come tomorrow to the conference that is taking place at the NH Málaga at 10am, sponsored by AirBNB, Home Away, etc, where some lawyers and politicians will give their thoughts about it.
http://www.holidaylet.es