Spanish property market undergoing structural shift

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.


SPI Member Comments

Thoughts on “Spanish property market undergoing structural shift

  • Will Needham says:

    The caveat on this article should be, buyers who do not choose to buy a property through the bank.

    The banks are falling over themselves to offer 100% finance on properties on their books.

  • Then the Gov. should stop the banks from offering 100% finance on properties. Otherwise no progress is being made on this front. Gov. ‘talk-the-talk’….but do not always act on their principles. During the boom decade(s) of house building in Spain millions of Euros were made from the parties involved (big money earned by builders/landowners/solicitors/estate agents…and workers to an extent)Where has all the millions gone? How many properties did the leading Estate Agents/Builders sell & build in the ‘boom’? Do the costings..get the figures…where’s the money?

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