Residential real estate market of Spain is held in banks and Aliens





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11.09.2010 08:26
According to official statistics, during the first half of this year the country had sold about 226,000 housing units. For comparison: in the pre-crisis years, the figure was around half a million objects.

The number of new facilities under construction are also reduced. At the current level of activity up to 2010 will be built at least 100 000 objects, compared to 800 thousand in 2006.

Over the past three years, housing prices, according to official statistics, fell by 20%. However, government statistics reflect events occurring in the market is not fully informs portal Kyero.com referring to The Financial Times.

At the present time, due to series of real estate companies bankruptcies, defaults by borrowers and various asset swap deal on debt, the largest real estate agents and owners of Spanish sites were local banks. At the end of 2009 the total value of real estate, who were on their balance sheets, amounted to ? 60 billion

In addition, financial institutions are the most aggressive discounters, "getting rid" of the excluded objects with the auction of subsidies for purchase of housing for employees and special promotions. Typically, large banks are doing a discount of more than 30% of their facilities, offering mortgages for up to 40 years.

The second largest savings bank Caja Madrid of Spain thanks to such shares managed five months of this year to sell 1,240 housing units. This is seven times more than in the corresponding period of 2009.

However, despite the "excitement" of sales and a sharp slowdown in new construction, most experts contend that the implementation of unsold housing stock will take another three to four years.

Spanish real estate brokers say that the discounts on items and the weakening of the euro against the pound sterling and other European currencies leads to increased interest in the market of "second homes" of Spain by foreigners.

According to head of marketing department of a major real estate agency Taylor Wimpey Spain Victor Saga "interest on the part of foreigners, by and large, and not anywhere to go. Stream of requests from them was continuous. "

According to its own research portal «Prian.ru - Property Abroad, Spain is consistently in the top 10 countries, real estate in which the Russians are interested in most.
www.zagorodna.com
Content tags: Overseas property
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