CB Richard Ellis to auction properties at ‘2005 prices’ in response to slump

With the Spanish property market in a coma, developers and their banking paymasters are having to be more creative about selling property. In an attempt to drum up a bit of interest, not to mention shift some properties, international property consultants CR Richard Ellis (CBRE) have announced that they are auctioning 190 properties at discounts of up to 32% in online auctions between now and early November.

In a recent press conference CBRE said that all the properties would be offered at discounts of between 13% and 32%, though without specifying whether the discounts would be on the original asking prices or comparable market prices. In any event, the properties will sell at ‘2005 prices’ say CBRE.

The properties included in the online auction are all newly built with an average price of 200,000 Euros, located on the outskirts of Spanish cities in the Valencian Region, Catalonia, Aragon, Andalucia, and Madrid.

The Spanish bank Banesto has agreed to provide 100% financing for all the properties bought in the auction, with mortgages of up to 40 years. They are offering mortgages of Euribor +0% for the first 2 years, then Euribor + 0.35% for the rest of the term.

Buyers who wish to participate in the auction have to put down a deposit of 1% of the estimated value of the property for which they want to bid.

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