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The Spanish property market, Investment opportunities in hostels & short term housing
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Den spanska fastighetsmarknaden - Investeringsmöjligheter i vandrarhem och korttidsboenden (Swedish)
Abstract [en]

This thesis discusses the general development of the Spanish property market over the last decade and future perspectives. A particular focus is on the city of Barcelona and the city’s local property market. The Spanish property market has since the latter half of 2007, beginning of 2008, dropped closer to 50 percent. Starting in the early years of the 21: st century, up to 2007 the Spanish construction sector in many ways drove the Spanish economy upwards. When the financial crisis hit, the economy stagnated and Spain fell into a deep recession. This resulted in an unemployment rate that as of today is running at 25 percent, weak domestic purchase power, an all-time high supply of property and a constantly declining number of property transactions.

In May 2014 the country is at a junction trying to determine which way the Spanish property market is heading. Within some segments of the property market and in several areas where tourism is high there are, although weak, signs of growth in the property market prices. However in smaller regions with less tourism the property prices are still declining by up to 12 percent annually.

The strong foreign demand on Spanish property contributes to a well-needed injection of foreign currency but these investments alone will not be enough to boost the Spanish economy. What we conclude is needed in order for property prices to increase in the long run is a stronger domestic purchase power, something we probably won’t see in years. Considering Barcelona, the city had the fourth most visitors of all the cities in Europe. This along with the unique culture,

sports, food, and the constant stream of tourists as well as the modest property prices makes Barcelona an interesting city for property investment.

In the thesis we compare investments being made in a hostel and short term housing for tourists. The result leads us to the conclusion that any property investment in Barcelona should be regarded as a risk and that you would need a steady stream of cash flow in order to hedge a continuing decline in property prices. Of the two options, short term housing for tourists would be the better of the two investments.

Abstract [sv]

Sedan slutet av 2007, början av 2008 har de spanska fastighetspriserna sjunkit med närmare 50 procent. Åren innan krisen hade den expansiva spanska byggsektorn i mångt och mycket drivit ekonomin framåt och när den globala finanskrisen slog till med full kraft stagnerade den spanska ekonomin och vände ned i en djup recession.

Detta resulterade i en arbetslöshet som idag uppgår till närmare 25 procent, svag inhemsk köpkraft, ett rekordstort utbud av fastigheter samt ett alltjämt sjunkande antal årliga transaktioner på bostadsmarknaden.

I maj 2014 står vi i ett läge där det är svårt att sia om i vilken riktning den spanska fastighetsmarknaden är på väg. Inom vissa fastighetssegment och i flera turisttäta områden i Spanien ser man tendenser på en återhämtning samtidigt som mindre regioner med färre turister, årligen ser dubbelsiffriga nedgångar på fastighetsvärden.

Den starka utländska efterfrågan på semesterbostäder och investeringsobjekt bidrar till en välbehövd injektion av utländskt kapital, men att det kan bidra med något annat än möjligtvis lokala värdeökningar har vi svårt att se. Vad vi tror krävs för en generell värdeökning av det spanska fastighetsbeståndet är en starkare inhemsk efterfråga, något som ligger flera år fram i tiden.

Vi har vidare valt att fördjupa vårt arbete på staden Barcelona. Det finns indikationer på att stadens fastighetsmarknad börjar närma sig botten och med ett konstant tillflöde av turister skulle

en investering i ett vandrarhem eller i korttidsboenden kunna ge en god avkastning fram tills dagen man väljer att avyttra fastigheten.

I arbetet har vi jämfört två investeringsalternativ i Barcelona. Vandrarhemsverksamhet och bostadslägenheter för korttidsuthyrning till turister. Resultatet av arbetet leder oss till slutsatsen att en investering i den Spanska fastighetsmarknaden måste uppvägas av ett starkt kassaflöde. Vi finner därför alternativet korttidsboenden som den bästa investeringen av de två.

Place, publisher, year, edition, pages
2014.
Keyword [en]
Real Estate, Housing, Real Estate, Housing
Keyword [sv]
Fastighetsinvestering, Spanien Fastighetsbubbla, Investera
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:kth:diva-146609OAI: oai:DiVA.org:kth-146609DiVA: diva2:724195
Supervisors
Examiners
Available from: 2014-06-12 Created: 2014-06-12 Last updated: 2014-06-12Bibliographically approved

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