Banks Accumulate 140,600 Properties That Might Reduce in Price by 35%
29 March 2012 @ 12:07
Banks have accumulated 140,600 finished Spanish real estate assets that could already be for sale. The banks’ portfolio of Spanish properties for sale has a rough value of 26,700 million euros, but in little more than a year it will be devalued by 35%, according to the firm CB Richard Ellis. This is the provision that the executive branch of government demands for finished housing in its restructuring plan.
What originally would be worth more than 26,000 million in mid-2013, when the reform culminates, will have a countable price of 17,300 million, which is 9,400 million less. The Economic Ministry trusts that, with this reduction, these homes will be launched to the market more easily.
“The finished residential product tends to be hard to digest for the Spanish real estate industry, but in the long run it ends up being assimilated. They are homes for end users, and if the prices are lowered, rentals are offered with the right to buy or the rents are strengthened, and the operation ends up being carried out,” explains José Luis Marín, network director of offices and assets of the firm CB Richard Ellis. Read the full article
Please leave a comment about this post. You don't have to be registered to leave a comment.