Spain’s monumental glut of new homes is still massive

if this is correct then the property market in Spain is still in serious trouble

https://www.spanishpropertyinsight.com/?utm_source=Spanish%20Property%20Insight%20News%20Bulletin&utm_campaign=259383ea0a-SPI-NB-160818_COPY_01&utm_medium=email&utm_term=0_5c1bbc37e8-259383ea0a-254641877

Don’t need a newspaper article to tell anyone this, ** EDITED - inciting**you can see this.

How on earth can the words “ Any one with eyes can see this” be classed as inciting considering if you do have eyes anyone can see the over building going on.

The massive amount of properties up for sale especially on the Costa's...is not down to no-one wanting to buy property in Spain...it is down to greedy untrustworthy builder's and greedy Mayor's ...that are allowing the unwanted over building to go on the new build properties that are up for sale are not cheap ...less than 50 MTRS from my Villa...we have 170 key ready 2/3 bed Villas all  empty as they are just to expensive ... the price starts for a 2 bed extremely small so called terrace Villa is €179,00 on my small (65 properties urb) the  villas are 2/3 bed  quad's ..at this  moment have.  2 fully modernized 2 bed quad's up for sale at €95,00 our community is gated with a community pool and is extremely well kept .

The fixed overheads that come with property ownership in Spain are a massive obstacle to sales growth. Add the exorbitant fees agents charge for doing little but show someone around, government taxes, severe renting restrictions and then high running costs you need to be slightly unhinged or very rich.

People have simply wised up to the fact that they can expect no capital growth for decades and huge fixed costs from an investment that provides little return except an annual holiday in the same place and a headache. 

Most of those properties ( if not all) are owned by Banks/funds now. Problem is that the value that they have in their balances--- due to crazy valuations of the past--- does not allow them to offer them at market prices. 

Problems is with banks and funds

M

I totally agree, banks should comply with financial regulations and write down all assets to achievable valuations.

Many properties can’t be sold as it would create losses in their balance sheets and lead to another financial crisis.

Many of these properties can't be sold as they were built in places nobody wants to buy. They should be bulldozed, and trees planted.

Yes, Roberto: that is another problem: houses built, with banks finances in rural zones. 

For those who own an illegal property which now cannot sell, mortgage....there is an action which makes banks liable of not just money paid before completion but after completion too if the buyer subrogated developer´s mortgage

Yes, effects of the crazy property and financial boom are still there

In my opinion, it is  mostly funds who should be forced to place properties at good prices as they hold  most of the abusive mortgages  that these properties have on them and acquired those credits at ridiculous low prices. That is the core, I think. Funds have been a solution for bank´s balances but not for property market or economy.

What do you think?

M

If Spain continues to build legal and illegal properties that no one wants or has money to buy, I do not see how the glut will ever end.

Maria

If you are correct the Funds will have paid rock bottom prices for these properties and will be happy sitting on them and drip feed into any rising prices.

Either the banks have sold these assets at below the mortgages held on them OR they are still holding onto many but falsely reporting in their balance sheets.

Hugh_Man:

Funds do not hold property sownership titles in many cases but just mortgage debt titles attached to those properties. As you said, the urgency for them to obtain value out of what they bought is not big as their acquisition price was very low and also it involves an interestingly long procedure ( fill with many obstacles due to recent rulings of the European Court) on Spanish mortgages. Property Registrars are also reluctant, in some cases, to register their rights at the Land registry 

Such an interesting scenario for a doctoral thesis

M

Definitely an intriguing scenario and still one where the Community suffers IF any of these empty properties are part of a Community as banks or whoever continue to prolong the re registration process delaying payment of un paid fees.

Our Community has recently seen the Sareb repossessing a number of properties previously owned by the developer, in your experience is this State owned Entity any more responsible or respectful than Commercial banks?

Maria,

Can a Bank with major unpaid debts of this nature that compromise community of owners have embargoes placed against them so that monies can be taken from them instead of having to wait years until they register the property or resell the property?

Is it correct to say that an embargo happens when a debt remains unpaid, which means that money can be taken directly out of an account without their direct permission? If so could this form of enforcement apply directly to a Bank?

Ads, interested to hear what Maria says but I suspect you could but most Communities are generally pleased when they know a Bank has repossessed as it ensures payment of current year plus previous 3 years, eventually, when the bank gets around to it.

To be frank, attempting to get an embargo will take as long as waiting for them to pay.

I wonder if there are any realistic alternative options as it seems so unfair that Banks are compromising innocent owners in this way? Especially if those debts are large and remain unpaid for a considerable time.

Are there no banking regulatory structures in place to protect given this scenario? 

Sad that communities have to be happy to accept a second rate solution where Banks are not made accountable for their debts in any timely manner.....and who picks up the cost in the interim?...the innocent scapegoated owner.

How can that possibly be considered acceptable?

P.s. I’ve often wondered why registering rights in the land registry is not compulsory?

Hugh-Man: Sareb owned properties are initially easily sold to individual buyers than Bank ones.

Ads: Embargos cannot be placed if properties are not registered to Bank´s names at Land Registry. Any proof of ownership by Bank can, nevertheless, suffice for a judge to force the bank to pay by Court decission.

Thanks Maria.

Non registering of rights in the land registry has led to all manner of problems, so what is the reasoning behind not making this compulsory?

I think there is really no reason for not making it compulsory but the nature of the institution which is a provider or public guarantee to ownership rights holder. You risk if you do not register it.The main function of a property registry is to provide reliable information and legal safety to citizens; they can rely on what is recorded there at the time of contracting on ownership or any other real estate rights: full and legal ownership, encumbrances, loans, charges, easements, habitation rights, ownership limitations, prohibitions for transference, judicial actions on the property, embargos...

I guess a government aware of the damage involved with lack of registration of ownership by Banks and Funds can pass a decree to make it compulsory and have judges/notaries starting the application process. In some cases, as said, when mortgage credits have been sod to third parties ( funds) registration of mortgaged properties ater being repossessed are having some difficulties at the Land Registry

Maria

Where you observe 

“ In some cases, as said, when mortgage credits have been sold to third parties ( funds) registration of mortgaged properties after being repossessed are having some difficulties at the Land Registry“

What sort of difficulties are they having Maria?