How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily Brief - Thursday 23 October 2014
- Mr Grumpy v Angeles Duran
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Default Rate of Spain's Property Market Hits 17 pct
A report by the Bank of Spain has revealed how the default rate of Spain's Property, Real Estate & construction sector reached a peak of 17% after the first six months of 2011, with many Banks, Cajas and investors battling to reduce their exposure to the ailing property market.
The rate now stands at a record high and is almost 35 times higher than the default rate of 2007, before the property bubble burst.
In the first half of the year Spanish banks estimated a total of €70 Billion of bad debt was held by real estate developers and builders, of loans totalling €414 Billion. The risk was thought to be greater among developers, reaching 17.7% of the total €308bn loaned.
The default rate recorded for property developers in the final quarter of 2008, as the country began it's long slide into recession, was 6.11%, which climbed to 10.8% a year later, and jumped further still to 13.9% by the final quarter of 2010.
As far as the construction sector is concerned, a default rate of 14.7% was recorded in the first 6 months of the year, increasing from 0.72% in 2007 and 12% by the end of last year
The Bank of Spain also noted how lenders were being more rigorous in the issuance of debt in these markets, and had reduced lending in for the tenth consecutive quarter in Q2 of 2011.
Latest News & Stories
- Spain Sees Cost of Petrol and Diesel Fall
- Spanish Students Protest for 3 Consecutive Days
- Spain's Bankinter profit up 31.6%
- Bank of Spain sees Q3 GDP growth at 0.5 pct q/q
- Spanish unemployment falls to 3 year low
- Spain to invest €864m in ports in 2015
- PP seeks to legalise spot deportations of illegal immigrants
- Catalan Finance Chief Open to 'Scottish Solution' in Spain
- Spain sees foreign visitor numbers up 7.4% 2014 y-t-d
- Iberdrola Profit Declines After Spain Cuts Renewable Subsidies
- What is the Euribor ?
- An Introduction to Alternative Property Purchase Schemes
- When you can’t pay the Mortgage