Homebuyers without savings, and 100pc mortgages will be a thing of the past predicts the G-14 developers’ association
110pc mortgages and property speculators without any capital were a typical feature of Spain’s property boom, but buyers in future will need to stump up as much as 30pc of the purchase price out of their own savings, predicts Fernando Rodríguez-Avial (pictured above), President of the G-14 association of Spain’s leading developers (few of which are having a good crisis).
Rodríguez-Avial also predicts that the Spanish property sector will become healthier, smaller, more transparent, with better statistics, and first-time house hunters who increasingly opt for renting over buying. He says Spain made an “enormous error” by undermining the rental market and favouring buying over renting.
Participating in a recent conference on the housing market, organised by consultants Pwc, Rodríguez-Avial admitted that the residential sector is in deep crisis with few financially-healthy developers and many companies at risk of disappearing.