Spain | Housing will be the economic cycle

For the first time in recent history, the Spanish economy is facing a recession in which residential construction is neither the trigger nor an exacerbating factor. The sector's fundamentals were in good health and many were still improving up until March.

Key points

• Key points:
• Unlike other crises, the downturn in demand has not originated from inside in the real estate sector, nor has this sector accumulated significant imbalances.
• Even so, this will not prevent the adjustment in the real estate market from being among the most severe.
• Toward 2021, the lack of imbalances paired with a reduction in uncertainty could mean a quicker recovery than in previous economic cycles.
• In order to consolidate this turnaround, it will be necessary to reduce the uncertainty sparked by continual regulatory changes.

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