Spanish Banks Expected To Increase Discounts On Housing Inventory

ith Spain's real estate market expected to take years to recover from the global economic crisis, Spain's banks — which now are the largest holders of property — are expected to offer discounts as high as 50% on repossessed properties in 2010. With more than 1.5 million properties on the market, and double digit unemployment rates, analysts predict that property prices in Spain will continue to fall through at least 2012. For more on this, see the following article from Property Wire.

spain real estate
Benidorm, Spain
Banks in Spain, now the country’s biggest property owners having re-possessed so many homes, will have to offer discounts of up to 50% in 2010 if they are to shift their stock of real estate, according to a new report.

Austerity takes a slice out of Spain's ham sales

Corporate and household austerity has hit sales of Spanish ham, among the country's most emblematic delicacies, and shown that pigs, too, can form an asset bubble.

According to industry representatives, Christmas sales this year of the traditional leg of acorn-fed Iberian pig, or jamón de bellota , could be down 20 per cent, or up to 40 per cent for the year.

Other, cheaper preparations have also been hit by cutbacks in corporate Christmas hampers and household consumption, driving down wholesale and retail prices by up to half.

With more than 25m pigs, Spain vies with Germany for the European Union's largest porcine population, and is among its most important consumers and exporters of pork meat products. Of the total population, about 20 per cent are "Iberian" pigs, an indigenous breed renowned for the quality of its meat.

Key-ready properties 'best bet in Spain'

New residences that have recently been completed are the best kind of real estate in Spain, it has been stated. Known as key-ready homes, Martin Dell of Kyero commented: "The difference is that these properties are available direct from the developer - who need sales to prevent the banks from taking possession." These are better bets than repossessed lots being bought from banks, as developers are able to process matters faster and "negotiate from a more realistic property valuation", he added. Mr Dell noted that buyers looking for long term rental proeprties in Spain are able to push for bargains to the extent that only lets with no reserve price received offers at a recent auction organised by A Place in the Sun magazine.

Read more about New residences that have recently been completed are the best kind of real estate in Spain by www.propertyshowrooms.com

New residences that have recently been completed are the best kind of real estate in Spain, it has been stated. Known as key-ready homes, Martin Dell of Kyero commented: "The difference is that these properties are available direct from the developer - who need sales to prevent the banks from taking possession." These are better bets than repossessed lots being bought from banks, as developers are able to process matters faster and "negotiate from a more realistic property valuation", he added. Mr Dell noted that buyers looking for long term rental proeprties in Spain are able to push for bargains to the extent that only lets with no reserve price received offers at a recent auction organised by A Place in the Sun magazine.

Read more about New residences that have recently been completed are the best kind of real estate in Spain by www.propertyshowrooms.com

New residences that have recently been completed are the best kind of real estate in Spain, it has been stated. Known as key-ready homes, Martin Dell of Kyero commented: "The difference is that these properties are available direct from the developer - who need sales to prevent the banks from takingpossession." These are better bets than repossessed lots being bought from banks, as developers are able to process matters faster and "negotiate from a more realistic property valuation", he added.

Read more about New residences that have recently been completed are the best kind of real estate in Spain by www.propertyshowrooms.comNew residences that have recently been completed are the best kind of real estate in Spain, it has been stated.

Known as key-ready homes, Martin Dell of Kyero commented: "The difference is that these properties are available direct from the developer - who need sales to prevent the banks from takingpossession."

These are better bets than repossessed lots being bought from banks, as developers are able to process matters faster and "negotiate from a more realistic property valuation", he added.

Mr Dell noted that buyers looking for long term rental proeprties in Spain are able to push for bargains to the extent that only lets with no reserve price received offers at a recent auction organised by A Place in the Sun magazine.

Read more about New residences that have recently been completed are the best kind of real estate in Spain by www.propertyshowrooms.comKnown as key-ready homes, Martin Dell of Kyero commented: "The difference is that these properties are available direct from the developer - who need sales to prevent the banks from takingpossession."

These are better bets than repossessed lots being bought from banks, as developers are able to process matters faster and "negotiate from a more realistic property valuation", he added.

Read more about New residences that have recently been completed are the best kind of real estate in Spain by www.propertyshowrooms.com

Property Prices in Spain More Pain

0% and have only dropped 10%. The biggest house price falls to come are likely to be in the holiday hotspots where many overseas buyers have bought and will be lead by the Banks.

Banks are now Spain’s biggest property owners having repossessed property as loans went bad. Bank owned property is often lower priced with huge discounts available however BNP Paribas Real Estate, the real estate arm of French bank BNP Paribas, argues that banks in Spain will start having to offer discounts of 50% in 2010 to shift some of their stock of property.BNP Paribas Real Estate says present discounts not big enough to make sales.

The price drops could well be lead by the Banks who are now the biggest owners of Spanish real estate. BBVA, Spain’s second largest bank says that Spanish property prices were 30% over-valued, but have only fallen 10% so far.

Pundits suggest that the biggest Spanish property price falls will come where they are the most unsold homes. That could mean that areas around Madrid and Spanish hotspots such as Malaga (Costa del Sol), Castellon (Costa Azahar), and Tarragona (Costa Dorada) could see cut price Spanish properties in 2010