The biggest challenge of young people: moving from rental property

Share apartment in Spain: good, nice, and what"cheap"?The price of housing is watertight in Madrid and BarcelonaLa home purchase fell 3.1% in the second quart

The biggest challenge of young people: moving from rental property
Share apartment in Spain: good, nice, and what"cheap"?The price of housing is watertight in Madrid and BarcelonaLa home purchase fell 3.1% in the second quarter

young people are the engine of the economy. And those with ages of between 25 and 35 years , who entered the world of work and after the crisis of 2008, have been met with many more obstacles to saving money and, in consequence, are more limited at the time of making investment in real estate .

In Spain, more than 5 million people in this age group, according to the census of the INE (National Statistics Institute). Are digital natives , as they have grown at the same pace that technological development; they are non-conformists without fear the changes; they prefer to invest in experiences than in material goods and tend to have saving rates very low because, among other things, continue the philosophy of "YOLO" ("You only live once", that is to say, "you only live once").

to The outskirts of the cities

large cities attract more young people, to be centers of high economic development and with employment opportunities and professional growth. But high real estate prices in these cities have made this group of people, looking for a first property to be emancipated or to form a family, it is inclined toward the most affordable options offered by the suburbs , housing a larger size and new construction in good condition.

In the case of Madrid capital, for example, the price of the land in the first quarter of 2019 stood at 3.239,6 euros per square meter, which registered an interannual variation of 10.8%, according to the ministry of Development.

on the other hand, the smart homes equipped with home automation you could attract more attention because they meet the need for speed, immediacy and agility of the young.

The trends of internet usage of young people —spend more than 50 hours per week connected, according to Emarketer, along with the rise of "proptech" are revolutionizing the real estate sector. As digital natives, young people use their electronic devices to search for homes, both for rental and for purchase, to be the mobile device, which today generates more traffic in the search for housing , thanks to the various apps available for this work. Platforms real estate online will allow you to explore all of your options from the comfort of your house and contact with just those owners or sellers whose deals really interest you.

in Addition, with the new technologies of virtual reality, such as that offered by Virtio, in many cases you can see exactly how it is, the property by using a virtual tour without having to move to make a physical visit of the housing, which facilitates the search process and allows them to devote their time to other leisure activities.

to Pay the lowest price for the best choice

With the "boom" of the rental price, together with facilities mortgage offered by banks currently (especially for young people under the age of 35 years), some young people are opting for the purchase of dwellings. In particular, there are 26.5% between the ages of 16 and 29 years in regime of housing property , according to data from 2017 INE. However, with a salary of between 16,000 and 20,000 euros a year, according to the same source, young people are increasingly difficult to save the money to pay the initial of a property and its associated mortgage.

Between 25 and 34 years, only 37% have a housing (according to data from 2015 Urban Institute), while that of the previous generations, like the baby boomers or the generation X, the percentage of homeownership in that period of age was 8 points. The preferences of the young to live in the center of the big cities, which are the most expensive areas, is one of the factors that influences the delay of this group of people in taking the step towards buying, according to the report.

young people under the age of 30 allocate between 30% and 33% of their salaries to the payment of the housing and associated expenses, as indicated by a study of Habits and Big Data. Against this background, and in front of a market of high prices, looking for living options in the centre of the city and on floors in good conditions at an affordable price, in the face of what arises in the solution of sharing floor.

The most affected by the rent increases are the young people of Catalonia, Madrid (9,3 euros per month per square metre) , the Basque Country and the Balearic islands (6,8 euros per month per square meter), areas that have rents higher, show figures from the ministry of public works. On the other hand, the autonomous communities such as Extremadura, Castilla La Mancha, Castilla y León and Galicia are among the lowest rents in Spain, with average figures equal to or lower than 5 euros per month per square meter.

Updated Date: 14 September 2019, 03:01

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