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What's really happening in the real estate world in Spain? The EOS Team are going to be keeping you up to date with everything that's happening from a market perspective.

Spanish developer to raffle off unsold apartments
Wednesday, December 3, 2008 @ 10:18 AM

A Spanish property developer said Tuesday it will hold a raffle to unload 31 apartments near Barcelona which have been difficult to sell amid a collapse in the real estate market.

Tickets for the raffle cost 50 euros (63 dollars) and they will go on sale on Wednesday, a spokesman for developer Grupo de Empresas Rob told AFP.

The company hopes to sell 7,000 raffle tickets for each apartment which will be awarded, meaning it would raise 350,000 euros per dwelling.

If the developer does not sell at least 6,500 tickets for a particular apartment, the raffle will not go ahead for that property and participants will receive a refund.

The raffle, which will be supervised by a notary, will be held in the coming months, the spokesman said.

All of the apartments -- which are between 50 and 90-square metres (970-square feet) -- are all located on the same street in the Barcelona suburb of Santa Coloma de Gramenet.

After a decade-long boom, Spain's property market began to slump last year due to rising interest rates, oversupply and tougher lending conditions introduced in the wake of the global credit crunch.

Property sales declined 28.2 percent during the first nine months of this year compared with the same period of 2007, national statistics institute INE said last week.

The drop in sales has led developers to come up with innovative promotions to try to sell properties.

In October another Spanish developer, Salsa Immobiliaria, offered a one bedroom apartment to anyone who bought one of its four-bedroom townhouses near the beach in Terrazas de Miraflores on the Costa del Sol.

In May a man who could not meet mortgage payments on his apartment near Madrid tried to organise a raffle to unload it but he had to call off the contest because he failed to get the proper authorisation.

Source: Google



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7 Comments


Sandra said:
Thursday, December 4, 2008 @ 12:05 AM

Some years ago, in another period of economic downturn, a local businessman tried to raffle off his large and beautiful but very expensive home.
He charged only £1 per ticket and the initial uptake was quite frenzied, but then sales slowed. At only £1 per ticket, he needed an expensive advertising campaign if he was to sell all the hundreds of thousands of tickets involved. That would cost more money and therefore more tickets.
The advertised draw day came and went and he asked for an extension on the draw date to enable him to sell the rest (over threequarters) of the tickets. The ensuing publicity drew the attention of the local licencing authority.
It was found he did not have the necessary licence to run such a raffle and so, probably using this problem as his 'get out', he called the raffle off and announced he would return all the ticket money.

Needless to say not everyone got their money back and the saga ran for years. I cannot remember the final outcome but I do know people who could ill afford to lose such money never got anything back.It was a complete fiasco!!



JAYBEE said:
Thursday, December 4, 2008 @ 6:25 PM

how can the spanish property developers blame it all on the cridit crunch? they want to look closer to home, dodgy developers, greedy investors,and corrupt oficials, need i say more?


wayne crowsley said:
Thursday, January 1, 2009 @ 11:20 AM

We have had our property on the market in Spain for several months and we are doing a raffle also. Please take a look at my website.


Al said:
Saturday, January 24, 2009 @ 9:06 PM

Real Estate Raffles are really taking off! Look http://reraffle.com Seems to be working very well for many.


Will Stock said:
Monday, February 16, 2009 @ 11:20 AM

The best one I've found is a raffle of ten holiday properties on the Spanish island of Mallorca/Majorca. Tix are £16/$25 each and the odds of winning are 1 in 3,333 for a studio or a house, all with stunning views, handmade beds, a nice pool, bar, sauna, etc. in 3 acres of gardens. You can actually even get your money back if you stay in one of their hotels (stay three nights and they take all your ticket money off your hotel bill) and they even support a good charity protecting children in Africa from malaria. This one's a no-brainer.


Will Stock said:
Monday, February 16, 2009 @ 11:22 AM

The best one I've found is a raffle of ten holiday properties on the Spanish island of Mallorca/Majorca. Tix are £16/$25 each and the odds of winning are 1 in 3,333 for a studio or a house, all with stunning views, handmade beds, a nice pool, bar, sauna, etc. in 3 acres of gardens. You can actually even get your money back if you stay in one of their hotels (stay three nights and they take all your ticket money off your hotel bill) and they even support a good charity protecting children in Africa from malaria. This one's a no-brainer. Sorry -- I didn't include the websites in my first post. For UK folk it's http://www.holidayhomedraw.com or in dollars, www.dreamhomedraw.com.


Will Stock said:
Monday, February 16, 2009 @ 11:23 AM

Sorry -- I didn't include the websites in my first post. For UK folk it's http://www.holidayhomedraw.com or in dollars, www.dreamhomedraw.com.


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