Spanish banks such as CaixaBank, BBVA, Sabadell, Santander and Bankia are preparing a large sale of properties they have taken over from borrowers who defaulted on their loans.
The banks want to be rid of these homes now that prices are rising and professional investors are showing strong interest in property in Spain. It is expected that homes worth at least 16 billion euros will be sold over the next 14 months.
Both the central banks in Madrid and in Brussels want the banks to withdraw from assets relating to non-performing loans. This is part of the process of making the banks more solid, and the process of assessing their capital becomes more transparent.
Much of the sale goes to property funds with a great deal of capital looking for good investments.
Both the EU and the US central banks have put a lot of money into the market, which has led to record-high share prices. For investors, investing in property is often a more attractive option, which helps explain the interest in investing in Spain, where prices are still low. Prices are now on the way up again.
Spaniaposten 23/11/2017