Latest News on the Reduced Spanish Property Market
4% on new building in stead of 8%
The new government has decided to maintain the discount on new property. This means you only pay 4% on new building in stead of 8% till the end of 2012.
Values have fallen by between 20pc and 58pc depending on the lender, location, and condition, and by 32pc on average since being repossessed. Fitch analysed more than 8,000 homes repossessed by Spanish lenders to reach these conclusions.
BBVA is the most aggressive bank when it comes to discounting the price of repossessed homes, and sells quicker than most as a result. BBVA discounts its repossessions by 58pc on average, compared to an industry average of 43pc, with an average time-to-sell of 11 months compared to an industry average of 13 months.
Santander, Spain’s biggest bank, discounts by 43pc and sells in 14 months on average.
Fitch also warn us not to expect the credit crunch to ease up next year, as Spanish banks are only lending to people who buy one of their properties.