Spanish banking property is selling better

Spanish banking property is selling better

Volume sales of flats, apartments and villas owned by major Spanish banks increased by 10% in H1 2014. One of the reason for this phenomenon became prices decline. In particular, during the named period, average Spanish banking apartment worth €124,600, that was 35% less than at the end of last year, when it reached price of €193,000, says ee24.com citing the Cinco Días media.

Spanish development sector was particularly hard damaged by the crisis that broke out in the country three years ago. The collapse of Spanish economy resulted sharp growth of the unemployment rate and caused the increase of defaults on loans, which in turn allowed local banks to confiscate property that was used as mortgages guarantee. Thus, today Spainish banks are the largest owners at the local real estate market. Almost all of them have own  real estate centers involved in the sale of objects inherited because of unpaid loans at below market prices.

BBVA bank is a frontrunner in sales of banking real estate. In Q1 2014 this bank managed to sell 11,402 properties with the total income of €910 million and the average selling price per apartment amounted to €80,000.

As for the second place in the top five of most successful banks in Spain, engaged in the sale of real estate, it belongs to Sabadell bank. Sabadell exceed BBVA in terms of the average cost per apartments sold, which in his case amounted to €175,000. The the bank sold 7541 properties in H1 2014 and earned €1.319 billion. According to Sabadell representatives, the recent market situation has undergone some changes and demand for apartments worth less than €100,000 is decreasing.