The bank responsible for disposing of many of Spain’s foreclosed and bankrupt property stock is selling a new slice of 2,200 homes at up to 40% discounts. They are a range of residential properties in various locations around Spain including large cities and small towns on the coast. There are also around 700 commercial premises.
All the 2,200 discounted homes involved are second hand, with nearly 700 in Valencia, 500 in Catalonia, 170 in Andalusia, 140 in Murcia and more than 100 in the Canary Islands.
As well as the discounts, mortgages will be available on the Spanish properties without any commissions. Bankia, the bank selling the homes, was set up in 2010 to amalgamate the operations (and losses) of several regional banks that were left in trouble by the global financial crisis. Since 2010 Bankia has been gradually disposing of the assets, usually at large discounts. They are available through a range of Spanish estate agents.
There are certain advantages to buying from the bank, as a recent homebuyer Julia Martin explained to Spain Property Guides: “When you buy from the bank it eliminates some of the problems that can occur, like someone selling property that doesn’t belong to them, someone selling property on land that shouldn’t be built on and buying a property that has an awful lot of debt on it. When you buy it from the bank all three of those have been eliminated.”
Since the start of the financial crisis in 2007/8, prices in Spain have fallen by as much as 50% but have now started rising. Most of the losses were concentrated in Spain’s inland cities, and the recovery has been most pronounced in the main hotspots for British buyers. On the Costa del Sol and Costa Blanca prices have been rising steadily for the past two years, and are currently increasing by as much as 10% per annum.