Spanish Crisis Triggers Real Estate Price Collapse

Baltimore, MD (PRWEB) June 29, 2012

A move by Spanish banks to offload the build-up of foreclosed properties on their books is triggering a massive decline in real estate prices, researchers at InternationalLiving.com have found.

Spains real estate market saw a flurry of building activity prompted by rising real estate prices and property speculation up until 2007, when transactions came to a near standstill.

As a result, Spain now has an estimated two million units worth of excess residential property.

Spanish banks had been slow to offload the properties, which came into their possession when struggling developers proved unable to repay loans.

However, the banks now need an estimated $ 77.4 billion to stay afloat. The Spanish government has officially requested a bank bailout from the European Union. And so the financial institutions are now attempting to liquidate as much of their inventory as possible.

The move is good news for overseas buyers who can now secure Spanish real estate for a fraction of its peak prices.

Until now, there has been no genuine effort to sell this inventory, explained InternationalLiving.coms real estate contributor Ronan McMahon. But the banks are finally doing deals.

McMahon added that banks are offering up to 95% financing on their properties.

He continued, Financing is available direct from the banks that have foreclosed on the properties. Put simply, they are trying to turn large, non-performing loans they have made to developers into many smaller, performing loans to individual buyers.

While much of the countrys cut-price real estate is located around the tourist areas of the Costas, there are some major discounts available in more attractive areas.

A series of newly completed condos in a historic area of Granada, for instance hailed as Spains most beautiful city have just been offered by one Spanish bank with a price tag starting from less than $ 100,000 per unit.

The 800-square-foot units are within walking distance of the citys Old Town and come with 95% financing available for both domestic and overseas buyers.

Monthly repayments on these units could be as low as $ 600 per month, said McMahon.

To read InternationalLiving.coms full article on the Spanish crisis and the real estate opportunities it has created, see here: “Spain’s Real Estate Market: Up to 50% Off Property Prices”.

Editors Note: Members of the media have full permission to reproduce the article linked above either in part or in its entirety, once credit is given to InternationalLiving.com.

Media Contact: For information about InternationalLiving.com content republishing, available source material or to book an interview with one of our experts, contact Associate Editor Carol Barron, 772-678-0287 (US), CBarron(at)InternationalLiving(dot)com or visit International Living Media Center . For automatic updates on the most current stories, follow International Living Media on Twitter.

For more than 30 years, InternationalLiving.com has been the leading authority for anyone looking for global retirement or relocation opportunities. Through its monthly magazine and related e-letters, extensive website, podcasts, online bookstore, and events held around the world, InternationalLiving.com provides information and services to help its readers live better, travel farther, have more fun, save more money, and find better business opportunities when they expand their world beyond their own shores. InternationalLiving.com has more than 200 correspondents traveling the globe, investigating the best opportunities for travel, retirement, real estate, and investment.







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