Monthly Archives: June 2012

House Prices Fall 30% from 2007 High

We are currently witnessing the sharpest fall in Spanish house prices on record. According to the property prices index of leading Spanish company TINSA, house prices fell by 11.1% in 2012 May compared with 2011 May 2011, one point less than their April fall of 12.5%.   Now that the data for May is in, it’s clear that the fall in house prices since their 2007 high has increased by four te

On the Hunt for a New Flat in Madrid

There is a property micro-market in Madrid that we can call a “hotspot” of apartments for sale without any doubt: new homes and new housing developments in the center of Madrid. They are very rare, and it is hoped that the lack of available new homes in central Madrid can be satisfied (in part) by second-hand refurbished homes. The new home in central Madrid is a scarce commodity. The devel

The Doors of the Spanish Banks Crisis

  by Richard Bayston     In the days before the announcement of the bailout of Bankia at taxpayer expense, Spain was looking anxiously through three open doors that in any case will no safe the property market.   Behind one of them was the spectre so feared by her politicians: the outright failure of Bankia. Had this happened, it would certainly have both deepened the cr

Bankia Crashes, Spanish Taxpayer Picks Up the Wreckage

  by Richard Bayston     Bankia’s declaration of bankruptcy at the end of May can now be seen as the final step of the slide of the Spanish banking system into complete dependence on the State… and the State asking for funds to the EU.   Just like RBS in Britain, and just like the events of 2010 in Ireland, the State has stepped in to support the collapsing financial

The fall in Spanish property prices is picking up speed

  The drop in house prices in Spain will tend to pick up speed, the joint estate appraiser, Euroval, reports. (the statement had been released before the Spanish bailout was announced two days ago).   The study said that Spanish banks are managing their portfolios ‘more actively’ and that they have begun to sell adjudicated housing and mortgage loans.  This is expected to have an

Spanish Property Auctions: another way to sell in this crisis

  The current Spanish economic crisis has had its positive effects in the market looking for and promoting other ways to sell properties. For instance, we’ve seen the emergence of property auctions offering attractive starting prices.  One good example of these is the round of acquisitions we’ve recently seen in Madrid, which saw starting prices from € 21, 000 for Madrid flats, to be