The General Director of Rover Alcisa’s Property Developer, Salvador Tordera, states in an article published in the economy newspaper Cinco Dias, the diagnosis of the current housing market situation and formulates a package of economic measures aimed at combining timing housing recovery in Spain with employment generation.

In the article, The General Director of Rover Alcisa’s Property Developer says that there is a vicious circle in the country's current economic and housing market that prevents from overcoming the current financial crisis and revives the housing market as a way of employment generation. "We have a financial crisis that blocks the exit of the problem and generates a vicious circle. The financial institutions have many assets on the balance sheet valued at prices above the current market to avoid losses. The active does not find buyer. Entities do not dispose of financial assets, and therefore do not wish to grant new loans to the promotion, to avoid competition and justify the fact that there is a lot of unsold homes".

In this turmoil, the housing those developers that could start new houses without new revenues, are forced to foreclosed assets by increasing their financial problem. Consequence: an increase in unemployment and new homes are incorporated into bank balance due to foreclosures.

We must break the vicious circle mentioned, in order to recover the sector, whose importance in the economy can not be the same, although it should have its specific weight in view of its impact on employment generation. 

One alternative is to turn on the tap of credit under certain conditions. This way, the state will receive more revenues through taxes, helping to boost employment and reduce mortgage foreclosures.

Another is that the Government creates a bad bank to absorb unsold assets of financial institutions in order that these, releasing part of the balance commit themselves to provide funding for new operations. 

In the interest of a transparency desired, an independent body should assess the troubled assets that would then be offered to the Bank Fund Restructuring. The FROB will have those assets in the balance until the improvement of the economy allows its sale. 

Another alternative is to enhance the performance of the Official Credit Institute in the field of housing loan promoter (VPO). In that sense, the ICO could become a bank for the development of housing finance. If the ICO has developed a financing of social housing for sale, this agreement is not being signed in most cases by financial institutions. Consequently, if the ICO became a bank it ensures the whole process, developer and mortgage loan buyer. 

Complementary to these there are other measures that would help to alleviate the sector and revive the economy, like encouraging the promotion abroad of tourism and holiday home. Germany and the Scandinavian countries are experiencing strong growth rates and have a significant population nearing retirement age. The revival of sales in this subsector would have great importance for improving the housing and financial sector. In Mediterranean communities the housing stock of these features can be almost 50% of the total. 

It would be desirable to create a seal of quality in order to provide security and confidence to investors or residents. In that sense, we should proceed in a coordinated way to a campaign of information and creative power of thought, comparing, for example, prices in other European countries. 

Also the development of the Socimi should be improved; newly created companies to encourage investment in real estate for rent, and could have served as alternative financial institutions stopping the problem of ignoring the housing stock's current estimates for the same further future, and obtaining in this way, a return of that stock. 

Similarly, it would be appropriate to review the transfer tax (ITP), a tribute that currently discourages the sale of used housing and therefore acts as a brake to the mobility of workers who want to relocate. 

For the sake of collection, removing the excise tax is complicated, however, it should consider temporarily, for example, for purchase by a non-resident of a house or land, or in cases of sales by changing work. The developer will give the bank a number of dwellings as payment for the value of the land. This alternative would give a boost to employment and promoters. 

Reactivating the rental market 

In the medium term, we need the market to be in the hands of companies, such Socimi, hence the need to improve its regulation. This way, as in other European countries, a tenant may consider a hired home in the same house all his life if he is not going to change city, or if you have to change city it is possible that the same company can offer alternatives in the city to where you are travelling.

Another measure would be to enable pension funds to be the big investors in these products, because the investor can be an attractive product with assured returns.