real estate Archives - Page 23 of 26

Foreign nationals taking advantage of falling costs are descending on the ‘costas’

SpainHouses.netNovember 26, 2012March 31, 2020Leave a comment

All is not lost: they say that the end of the property crisis is coming from the East, where Spain offers sunny weather, good services, excellent communications and now, cheap housing too. This has become a land of opportunity for a certain type of foreign client with money in their pockets. Mortgage loans may have dried out, but that does not matter; these customers pay in cash.

The Mediterranean region is producing a new model of real estate opportunity: the two-bedroom apartment for 60,000 euros. This is what some banks had been trying to avoid for a long time: demolition prices. But there it is. Reality has moved faster than the government and its bad bank project.

There are two ways of looking at life in the real estate sector. Looking out from the top, on the 19th floor of Madrid's Torre Picasso, the workplace of investment fund consultants, the situation is viewed with a cold, cautious eye: "In the short term, the bad bank will act like the casting-out-nines technique. Things will never be the same," says Rafael Roldán, an executive at Ernst & Young. Or, in other words, big capital has yet to make a move.
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Real Estate sector and the bad bank

SpainHouses.netSeptember 24, 2012March 31, 2020Leave a comment

The ‘bad bank’ could help save a large number of companies that suffer from the effects of the stagnation on the real estate market in Spain.

For this reason, nobody in the sector wants to let go of this opportunity and everyone is taking positions to be involved in the new entity in one way or the other. Certainly, the state-backed bank rescue fund, the FROB, does not pay much, but little is better than nothing, given the state of the market.

The last ones to have claimed their participation in the new entity are the developers, which are probably among the most affected by the crisis. Their argument is that they are the ones who really know the market and, for that reason, are the best to evaluate the assets that will be transferred to the bad bank.

“The FROB, or whoever will have the mandate over these assets, must increase the management capacity and for that reason, it must take help from the sector,” said José Manuel Galindo, head of the Association for Developers and Constructors in Spain (APCE).

The real estate assesors also want to participate. The main companies in this sector, such as Tinsa, Sociadad de Tasación and Valmesa, aspire to get hired to assess the assets of the nationalized entities –in principle, only these entities- that will be transferred into the new instrument.
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Barcelona Meeting Point 2012 has already confirmed the participation of 74 Russian investors and estate agencies

SpainHouses.netSeptember 10, 2012September 10, 2012Leave a comment

The XVI real estate exhibition Barcelona Meeting Point (BMP)

To be held from 17 to 21 October at the Fira Montjuïc in Barcelona, has already confirmed the participation of 74 Russian investors and estate agencies, and the list is at disposal of the real estates who have confirmed their presence in ‘Russian Meeting Point’.

As reported by BMP, the show will host a minimum of ten meetings 'face to face' with investors and Russian agencies, for those companies who book an exhibitor before October 10, which will cost 6,000 €.

The BMP is the only professional and international real estate exhibition placed in Spain since 1997, founded by the Consortium of Zona Franca de Barcelona (CZFB), which allows the meeting between real estate professionals, to know new investment opportunities and to get project funding, among others aspects.

Good news for overseas buyers: massive decline in real estate prices in Spain.

SpainHouses.netJuly 15, 2012July 16, 2012Leave a comment

Spanish Crisis Triggers Real Estate Price Collapse

A move by Spanish banks to offload the build-up of foreclosed properties on their books is triggering a massive decline in real estate prices.

Spain's real estate market saw a flurry of building activity prompted by rising real estate prices and property speculation up until 2007, when transactions came to a near standstill.

As a result, Spain now has an estimated two million units worth of excess residential property.

Spanish banks had been slow to offload the properties, which came into their possession when struggling developers proved unable to repay loans.

However, the banks now need an estimated $77.4 billion to stay afloat. And so the financial institutions are now attempting to liquidate as much of their inventory as possible.

The move is good news for overseas buyers who can now secure Spanish real estate for a fraction of its peak prices.

While much of the country's cut-price real estate is located around the tourist areas of the Costas (Costa del Sol, Costa Blanca, Costa de la Luz, Costa Dorada, Costa Brava, Canary and Balearic Islands...), there are some major discounts available in more attractive areas.

A series of newly completed condos in a historic area of Granada, for instance – hailed as Spain's most beautiful city – have just been offered by one Spanish bank with a price tag starting from less than $100,000 per unit.

The 800-square-foot units are within walking distance of the city's Old Town and come with 95% financing available for both domestic and overseas buyers.

Fuente: internationalliving.com (sfgate.com)

New Push to Uphold Spanish Banks

SpainHouses.netMay 9, 2012August 5, 2019Leave a comment

According to an article reading in El País, the government may inject public funds into the banking system if this is necessary to save the banking system.

The government had guaranteed not to give money to the banking industry which is struggling in the wake of a collapsing ten years of housing boom.

"If it was necessary to reactivate credit, to save the Spanish financial system, I wouldn't rule out injecting public funds, like all European countries have done," Mr. Rajoy said in interview with Onda Cero radio stations.

On the other hand, an official at Spain's finance ministry said measures that are expected to be approved by the cabinet on Friday will include guidelines to remove impaired real-estate assets from banks' balance sheets.

The segregation of toxic assets is seen as key to completing the clean up and calming investors.

The Spanish finance ministry official explained that the government and central bank are studying a specific cleanup plan for Bankia SA and Banco Financiero y de Ahorros SA, which could include a total change of their management. Newspaper El País said Monday the government also plans an injection of state funds via convertible bonds with a rate of about 8 per cent.

Sources: El País, Wall Street Journal.