In 2013 the Spanish real-estate market has shown the first positive signs in terms of sales and prices, particularly in coastal areas in the islands and the Mediterranean. The increase in demand from the return of investors to this segment, basically foreign but also Spanish, has led to increased sales and a stabilization of prices in the provinces where tourism is most important. In the inland markets, the process of adjustment has not concluded, and excess demand is still putting pressure on prices, which continue to fall, although less steeply than last year.
With respect to production, housing construction is in a slump, although there are already clear signs of it having bottomed out. In short, the residential real-estate sector has undergone a significant adjustment in the last years. With the incipient economic recovery in Spain beginning in the second half of the year, demand can be expected to rise steadily, with prices stabilizing, particularly in those markets more geared to Spanish buyers.