Spanish banks to slash property prices

A recent report from Moody’s Investor Service revealed that a record number of homes in Spain were repossessed during the first quarter of 2010.  The research found that 27,561 repossession procedures were recorded in the first quarter of this year, up 59 per cent compared to the corresponding period in 2009.

Spanish property prices lower than they have been for years, but with rising numbers of ‘distressed’ properties coming to the market, there are plenty of opportunities to snap up a bargain.

And now, Spanish banks are reportedly set to slash asking prices for property further in order to attract buyers to the country.

Prices to fall in a desperate attempt to woo buyers

A Place In The Sun reports that ‘banks in Spain now recognise that they have no alternative but to reduce Spain property prices further if they are going to have any chance of attracting more buyers.’

The Spanish banks now own tens of thousands of homes in Spain, after taking on properties from struggling Spanish property developers who would have otherwise faced bankruptcy.  They have also been forced to repossess many residential properties.

In The Sun reports that ‘it is estimated that the banks now have around £20 billion worth of Spanish properties on their books.’ 

Banks keen to get properties off their books

In an attempt to reduce the number of properties on their books, banks plan to reduce the asking price for homes in a bid to attract buyers to the country.  There are fears that there may be a Japanese-style slump in the housing market which could hinder Spain for years to come.

So, if you are looking to buy property in Spain, it is possible to pick up a real bargain now that banks continue to slash asking prices.

Selection of investment property in Spain