Thanks to the combination of a 3 year world recession, 20% unemployment and a risky property development boom between 2002-2006 there are several estimates of between 700,000 to 1.4 million empty properties in Spain. Spanish banks have slowly started to offload extensive portfolios of bank repossessions and offer them to overseas and domestic financiers. One contemporary example is Santander, the biggest bank in the eurozone which is rumored to be trying to sell a portfolio worth 3 Billion Euros consisting of houses and plots of land to tidy up its balance sheet. Two rumoured potential buyers are Morgan Stanley and Cerberus who both have extensive property funds.
By mid 2011 Santander Bank alone held 8.3bn in repossessed Spanish property consisting of resales, uncompleted developments and repossessed land. The total figure for the whole of the Spanish banks is an estimated 86 Billion Euros according to the Bank of Spain.
On the Costa Blanca prices in some coastal regions have dropped by over 50% from the 2005 peak. Due to this drop in property prices there are currently some views that Spanish property is viewed as good value again albeit with considerable caution and health warnings about the future of the Euro and Spain's fiscal future. The property agency Tinsa estimates that there are 30,000 unsold properties, villas and flats in this region alone.
Long term the scheduled July 2012 opening of a new Airport in Corvera, near Murcia, City is predicted to bring increased passenger volumes from all over the world into the Costa Blanca and Murcia regions. The recently completed passenger terminal at Alicante in addition has heightened capacity though an argument with Ryanair has ended flights from the European short haul carrier at this time. There is also a planned Paramount Studios theme park in the Murcia region but no firm commitments or timeframes have been officially announced yet.
Some brave buyers are starting to snap up bank repossessions in Spain, meticulously choosing furnished and key ready developer deal bargains as either vacation houses or buy to let investments. Spanish banks are providing good loan to value deals on a number of these bank repossessions with extremely aggressive mortgage deals in an effort to slowly cut back their property asset portfolios.
By mid 2011 Santander Bank alone held 8.3bn in repossessed Spanish property consisting of resales, uncompleted developments and repossessed land. The total figure for the whole of the Spanish banks is an estimated 86 Billion Euros according to the Bank of Spain.
On the Costa Blanca prices in some coastal regions have dropped by over 50% from the 2005 peak. Due to this drop in property prices there are currently some views that Spanish property is viewed as good value again albeit with considerable caution and health warnings about the future of the Euro and Spain's fiscal future. The property agency Tinsa estimates that there are 30,000 unsold properties, villas and flats in this region alone.
Long term the scheduled July 2012 opening of a new Airport in Corvera, near Murcia, City is predicted to bring increased passenger volumes from all over the world into the Costa Blanca and Murcia regions. The recently completed passenger terminal at Alicante in addition has heightened capacity though an argument with Ryanair has ended flights from the European short haul carrier at this time. There is also a planned Paramount Studios theme park in the Murcia region but no firm commitments or timeframes have been officially announced yet.
Some brave buyers are starting to snap up bank repossessions in Spain, meticulously choosing furnished and key ready developer deal bargains as either vacation houses or buy to let investments. Spanish banks are providing good loan to value deals on a number of these bank repossessions with extremely aggressive mortgage deals in an effort to slowly cut back their property asset portfolios.
About the Author:
Aspect Estates have an extensive portfolio of Spanish Bank Repossession property updated daily. With over 6000 Spanish Properties for sale across the Costa Blanca, Almeria and Murcia regions
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