Five simple reasons why Spanish banks are a hated institution in Spain

Banks have a unique status in our society.  Powerful, and able to drive the economy, they seem heartless and ready to put profit above any moral or human principle. Why not just say this when it seems to be a generally held view?   They were vital in the good times when people needed money to fund projects – to buy a house, for example – but in recent years, with the economic crisis hi

The Bad Bank: properties will not be sold to small investors or buyers

  We said that on the 30th November and it is confirmed. The President of the Society for the Management of Assets of the Bank Restructuring (SAREB), better known as the “bad bank”, that was recently created to absorb the "toxic" assets from Spanish Banks, Belen Romana, trusts that the housing market will not be destroyed with the sale of its assets. In her first press conference since t

The bad bank does not really matter for overseas buyers and investors

The bad bank does not really matter for overseas buyers and investors: What matters is buying now at the lower ever price and minimizing risks.   Property market prices are reaching rock-bottom in main cities. In city centres and in prime coastal areas prices are stable. We understand that the creation of the bad bank will not much affect this trend. Moreover, the bad bank may help things t

Homes from Banks and Developers are Top Sales in Costa del Sol

Article from Spanish Real Estate property portal The Costa del Sol continues being one of the main destinations for the sale of Spanish homes dedicated to tourism. The banks' stock of homes in the Costa del Sol continues being reduced with the attraction of not only the weather, but of newly built houses and very attractive prices. On the other hand, in other areas of Spain, it's already bee

Banks Accumulate 140,600 Properties That Might Reduce in Price by 35%

  Banks have accumulated 140,600 finished Spanish real estate assets that could already be for sale.  The banks' portfolio of Spanish properties for sale has a rough value of 26,700 million euros, but in little more than a year it will be devalued by 35%, according to the firm CB Richard Ellis.  This is the provision that the executive branch of government demands for finished housing in i

Banks’ Risk at €217b may Bring Better Opportunities for Buyers

Well, 2011 starts at least with an exercise of honesty and transparency in the Spanish market - at least we hope. After January, with banks and saving banks (Cajas de Ahorros) having disclosed their property balances and risk exposure, the final figure of distressed property assets and risk exposure in financial entities stock is €217,000 million (updated to January 2011). It means €36,0

Banks are disclosing their exposure to property risk

Slowly, slowly, banks are disclosing their exposure to property credit risk and grounding to the real status of their spanish property business. The Bank of Spain worked out six months ago that it could be 181 billion and now the banks have the word. Banesto announced the last week an exposure of € 10.3 billion related to property and assumed a loss of 21%  - already there is 18% debt from b

Negative record of repossessions: 118,000 units

According to the Banks’ Financial Products Agency (Agencia Negociadora de Productos Financieros), during 2010, Spanish banks have already taken over a total of 118,000 properties from debtors. This is a negative historic record, the newspaper El Mundo has published today. The director of the Agency, Luis Javaloyes, commented that 30% of these repossessions could have been avoided if the banks

More bad news: Larger stock and -4.1% transactions

To solve the stock of the property market in Spain may take more years than expected. The Bank of Spain has reported that the Spanish banks hold a stock of nearly half a million houses, according to the newspaper 20minutos. Taking that figure into consideration, certainly the Banks have guaranteed to play  the main role in the sector. All the agents indicate that the stock will increase gradu

Extended crisis: fall in mortgages and more repossessions

The country will not recover from the property crisis in 2011 and certainly not until 2012 or 2013 at the earliest. Moreover, some pessimists like the IMF, forecast a long period of crisis up to 8 more years. The latest data does not give room for hope. The mortgage market is getting tighter and tighter in Spain. The rate has dropped in 4 consecutive months since May 2010 compared with the same

The 100% Mortgage Strategy in Spanish Property Sales

Summer is over. Signs of Spanish property market recovery in June/July with a 4% price rise seem to have vanished according to the latest figures released by the INE (National Institute of Statistics). Yesterday, the news was that Spanish banks are giving fewer mortgages: the rate of mortgage concession has dropped by 10.8% in June 2010 compared to June 2009. In May 2010 it had already dropped

Are Spanish Banks’ Property Portfolio Junk Boxes of Repossessions?

The aftermath of the credit crunch for banks in Spain is that the banks have become major players in the property business because of repossessions. At the peak of the crisis, in mid-2009, the banks had a portfolio of 100,000 units in Spain. According to, 40 different banks currently offer more than 17,000 properties on their corporate websites. Also, banks are organizing their ow