agree with you and the funds do not need bank money at all, hence they are very carefull in what they invest – they have shareholders to satisfy and who in their right mind would invest here with exchange rate as it currently is and a whole host of reasons.
They are playing the better game, waiting to see how much further it will fall, and in truth once the corner is somewhat in sight, it is then that the investors will buy at the bottom just as its bouncing back.
The developers themselves are the ones trying to save face, the banks put the squeeze onto them and its then once the cash has dried up that suddenyl the panic is on, trouble is by then it may be too late
A bunch of units have to be very keenly priced as the buyer in the main will want to sell them on and make a profit. He may be able to waif a few years, but he will be looking to make a profit.
Very few developers are totally self funding – as banks rolled out their cheap loans, most took advantage and borrowed. They also bought land at stupid prices, all desperate to jump onto the bandwagon. Many expanded into outher coutnries and have fallen foul of the global market problems.
The spanish do have a differeing mentality and unless one deals with them direct or understands that its hard to work out why they do what they do
I know of a swiss chap who has finally taken on a spanish partner in the business as she has been 40+ years in urbanismo and has made fabulous contacts. All developments she can get up to 20% more off the price as she knows who to speak to, which directors have the controlling influence and other such information. Now he has great deals – everyone else gets mucked around.
The days of Franco are vey much alive and well!