Slowing bank sales doesn’t really surprise us. At this stage in the recovery, the best properties have already been cherry picked, leaving a larger percentage of lower quality or uninhabited urbanizations on sale.
Anecdotal reports from estate agents suggest that dealing with banks is still less than straightforward and they are commonly pitching properties priced higher than comparable houses from private sellers.
With a vested interest in certain properties, the main lure from banks are eye-catching mortgage conditions – higher than normal loan to value offers are commonplace.
In other news, commercial property deals increased strongly last year. A recovery in the commercial property segment provides a great deal of confidence for the whole economy, and a surge in retail investment was a highlight.
The non-residential sector of the market was notably bolstered even further by fervent interest in commercial property from foreign investors.
Finally, home buyers will be pleased to hear that the tax relief offered by the government when buying a home (up until January 1 2013) will not be abolished – but there are still question marks over the deduction.
A tax reform proposal is due at the end of the month and is anticipated to recommend removing the relief. So far, the government seems intent on keeping the benefits, worth up to 1350 euros per year for taxpayers.
Here’s the best of this week’s Spanish property news.
