After the sharp correction during the crisis, activity in the real estate sector commenced its recovery in early 2014. The cumulative increase in real housing investment between 2013 Q4 and 2018 Q4 was 45%, compared with a rise of 15% in GDP in the same period. Other indicators also showed the cyclical improvement in this sector, such as transactions and prices.

However, this sector is still highly diverse in terms of the location of properties, their type and the nationality of purchasers. The recent buoyancy seems to reflect, among other factors, positive labour market developments and the low cost of borrowing against a backdrop of gradual growth of loans for house purchase. First, this article reviews recent developments in the main activity indicators (investment, transactions and new building starts) and house prices from an aggregate and disaggregate perspective.