The real estate sector continues down the path towards full recovery, considering the increase in home sales and the slight rebound in prices.

A report presented by financial institution Bankinter estimates that up to 380,000 homes will be sold this year and up to 420,000 next year. However, it does not expect a new boom in demand.

The report says the catalysts for the upsurge in demand this year and next will include increased employment, lower financing costs and the fact that people see homes as a better investment than other alternatives.

The lack of investment alternatives (except for equities) and the current low inflation rate are creating a market in which property investment can yield net profitability of roughly 4%. The Bankinter report shows that the real estate sector once again offers investment opportunities.

The same report also shows that the best alternative is purchasing real estate assets in prime locations in large cities and tourist centers, with a targeted net profitability of approximately 3% for an investment of at least 3 to 5 years.