Spanish distressed properties to triple in 2011

 

Spain is set to see a significant increase in the number of repossessed and distressed properties released onto the market next year. The claims were made by Fernando Acuna of Pisos Embargados de Bancos, a specialist property portal, who estimated that that there are currently as many as 100,000 such properties on the market.

Acuna estimated that this figure could triple throughout the course of next year due to new banking regulations introduced during last summer. The new regulations now force Spanish banks to be more transparent with regards to their seized assets and to write down the value of all property assets, that have been on the books for 2 years or more, by at least 30%. However, once these properties have been revalued accordingly, he expects that a new wave of investors with show a marked interest in Spain.

Acuna commented "There finally seems to be a realisation that they [the banks] must acknowledge losses and start to think about real values if the market is to be able to move forward," it said. "In short: they need to cut their losses and move on."