The Background is that Spanish banks and saving banks have at present around 750.000 immovable properties in their account books, and in the 2011 credit crunch haven’t arrived to the market.
The above-mentioned Banks have now (finally) reacted and will start applying the mentioned discounts from beginning of the year.
Currently the Spanish immovable property bubble has accumulated a price fall for second hand flats around a 28%. According to experts opinions is that at the end of 2011 it has not yet reached the ground. The well known Spanish portfolio holder METROVACESA, which was rescued by the banks as a part of a mega-restructuring operation, had previously taken the business decision to liquidate the private immovable properties and in this context lowered the prices drastically.
The decision of Spanish major commercial banks and METROVACESA are welcome, because only if the vast holdings of immovable properties, that could not be sold nor rented out through the last 3 years, could be sold, then the Spanish construction industry, that plays an important role in the whole national’s economy, could get started. Spanish banks have so far a great responsibility.
Finally the expected price cuts could be of a great interest for private investors, because an estimated 40% of the mentioned immovable properties, that haven’t reached for a long time the market, lie in coastal regions or in the Balearic and Canary archipelagoes.
For further information please contact Stefan Meyer: firstname.lastname@example.org