Banks under pressure to reduce prices on unsold properties in Spain
The Spanish property market has been recoverying slowly over the last year, prices have stabilised and in some areas are showing increases. However recent reports suggest that the country still faces a large backlog of unsold property, banks still own homes from struggling developers and repossessions.
In an effort to reduce bank’s real estate exposure the Bank of Spain has reportedly from the beginning of this month (October) put lenders under pressure to reduce the number of properties they presently own, banks therefore may be forced this Autumn to slash the prices of these unsold or repossessed homes.
British buyers are historically the largest group of foreign buyers, whether this will continue is to be seen, the biggest impact on the numbers of British buyers so far this year has been Brexit and the weakening of the pound, the strength of buying and that of the pound go hand in hand.
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