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Investors say : "Now is the time, if not, you 're going to miss the boat...."
21 May 2014 @ 13:34

The Spanish real estate brand is very much in fashion, at least for a large number of investors who gathered together yesterday (Tuesday 20th) in Madrid for a forum organised by the Global Real Estate Institute (GRI), a first for this Spanish firm. One of the main investment firms present at the forum confirmed,  "Everyone wants to talk about Spain. There is a lot of excitement around the real estate industry at the moment".

Spanish real estate focused the debate in the corridors of the Wellington hotel in Madrid, where 200 leading players from the domestic and international sector decided to be sincere about the real estate market but on one condition: 'one can mention the sin, but not the sinner.' i.e., all comments are public, but the media can not reveal who has expressed them.

However, despite the craze over buying in Spain, finding a balance that pleases buyers and sellers is not so easy. Administrative barriers, lack of information or long processes to bid for the assets are some disadvantages faced by investors, while sellers criticise the huge discounts that are required to close deals.

An international investor admitted that in recent years they have been observing Spanish real estate seeking opportunities. They dabbled in the past testing the water but those adventures brought no real profit. Now they have decided to take another look at Spain because they believe that now is the time.

But why Spain? The forum emphasises that Spain is much better compared to others who have suffered the economic crisis even more. Greece has a lot of pressure from the European Union to reform, sell assets, etc.  and the investors have  come to Spain because they believe that the assets are now at a low enough price and are going to increase in value with time.

This also indicates that in the last two years the government has taken many constructive measures. It highlights the launch of SAREB. Many of these investors consider the implementation of the so-called “bad bank” as a turning point for Spanish real estate.

Some of the participants emphasised that one of the current obstacles for the sector is the lack of banks willing to finance.  This, they insist is the result of the restructuring of the banks, which only left eight entities standing, a number of lenders who they believe to be too few especially when you consider the additional handicap that they already have lots of real estate on their balance sheets.

As a matter of fact, the Spanish banks have been under-represented at this event, as only bank Sabadell and Caixabank were listed speakers. The limited presence of national institutions contrasted that of the foreign banks who confessed that they were studying finance different finance options for Funds that wanted to buy assets in Spain. "We're on the dance floor and holding conversations", said the head of a European bank.

For this reason, investors are convinced that the financing for real estate will quickly return, something that can be seen in processes such as the debt refinancing of Colonial, where Axa and Generali Insurance entered the new syndicated loan.

However, some opt for caution and are wondering what will be the liquidity of Spain in the coming months. They also stress that no prospect of improvement in consumption is perceived or that housing prices are going to go up. The investors believe they are in a promising trial period. According to many almost six months ago nobody came to Spain, only the bravest. Now they see a whole group of investors chasing the same assets.

Is now finally the time to buy?

Like 2


harddunby said:
24 May 2014 @ 09:18

On the New World banking map, Europe has just propped up the failed banks of the PIGS, whilst America and Great Britain have imposed some order to there's.
Global institutions are merely exploring a Spanish market that has 1.5 million properties still available. What they want to do is convince the Spanish Government to lend them cheap money. This will yet again lead to even more off plan developments.

rob said:
24 May 2014 @ 10:55

Buy Buy Buy you are going to miss the Boat Buy

Richard said:
25 May 2014 @ 09:46

Don't buy, Don't buy!

With a lot of experience in Spanish Property I can only advise anyone not to be so stupid as to buy Spanish Property. What with the ever changing laws, land grabs, the massive amount of illegal builds, the incredibly slow legal process when things go wrong, why would anyone want to buy into Spain.

Of all the places in the world where you could invest with a much more trusted background....just don't.

From a Spanish Property Owner...

sooz said:
26 May 2014 @ 22:08

hype, hype, hype

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