Signs Of Improvement In The Spanish Property Market

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Signs Of Improvement In The Spanish Property Market

Spain can finally breathe easy as the long-awaited recovery of its distressed real estate market is expected to actualise in the near future. The past year had recorded an increasing amount of interest in the country’s property market as overseas investors hoped to make the most of considerably low prices. Spain has around 650,000 homes that remain unsold from the construction boom over six years ago. Average prices have dipped by around 30 per cent ever since, but market insiders have reason to believe that the country has made it past its worst period. The bad bank – a state-organised institution that was created in 2013 – took around 54 billion euros worth of troubled real estate loans from Spain’s nationalised lenders. SAREB has started placing these properties into portfolios that will be made available for purchase to investors, helping the market generate lost confidence as it seeks to improve the situation. International investors returning to Spain Interest is being revived in the Iberian property market, and the Spanish market, in particular, has become very active as foreign investors as well as funds that had once lost confidence are now returning in numbers. A number of private equity groups have been approaching SAREB with deals since the end of last summer. A number of property portfolios have been offloaded to private equity purchasers like HIG Capital and Blackstone. The former has purchased a share in the initial large package of real estate assets made available by the bad bank. The banks still have a lot of properties that need to be sold, and SAREB has increased its activity by offering portfolios to international investors, meaning that an increasing number of large players will soon be in a promising selling position. On the other hand, Spain’s property market is infiltrated with investors who are hoping to find attractive properties for significantly high rental yields and low prices. However, this gap is expected to become smaller with the passage of time. Several outlets claim that more conservative and slower investors have begun considering investment in the Spanish real estate market. The upturn in international investor interest is being experienced in many other EU nations as well, but few are showing as strong signs of improvement as Spain. Investment in the Eurozone’s commercial real estate market was at its peak following the credit crunch. Activity has increased by 21 per cent on an annual basis to 154 billion euros. Who is investing in Spain? A good number of transactions in Spain’s real estate market come from Germany and the UK. Reports suggest that peripheral economies like Ireland, Portugal and Spain, where real estate markets have been in a severe slump over the past few years. Prices for Spanish properties are quite low at the moment. Many say that prices have hit rock bottom and that Spain can now expect them to rise at a quick rate as the year progresses. According to market insiders, Spain is well on the road to recovery, finally. For more information about the company and what it offers, feel free to visit: For inquiries, individuals can call them at +381112084841 +381638619035

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