As a RICS Chartered Surveyor, resident and valuing residential property in Spain for the past 10 years and involved for many years before, I’ve taken a professional interest in all that’s been happening with regard to property price trends in Spain. Since so many of Spain’s unsold (and repossessed) properties are held by the country’s banks, they play an important role in the price determination of Spanish real estate.
The big question has always been: “Who is going to occupy these properties?” It’s not just price that’s the problem. For too long, there was just too much superfluous construction funded by speculators and land buyers, with little thought as to whether anyone would actually want to live there. That’s the real overhang of the market. Now some banks are continuing the immoral practices of high loans by offering to lend sometimes more than 100 per cent of the valuation of properties they have taken ownership of – presumably because it helps them to offload properties at inflated prices. Continue reading