Spanish developers advised to drop prices 30% now, or sell for 50% less in 3 years

Posted on October 21, 2008 by Spanish Property News
Filed Under Spanish property crash, spanish property prices |

Spanish property developers need to drop their asking prices by 30% now, or risk selling for up to 50% less in 3 years time, argues Javier Ortiz, finance director of the developer Grupo Inmo, according to a recent article at the Spanish financial news website elconfidencial.com.

“Those who don’t sell for 25% to 35% less (or whatever necessary) will be buggered by an extra little problem: financial costs of 7% (Euribor plus 1.5% at best for new refinancing deals) on 80% of the cost of the property,” Ortiz is quoted as saying. “That means an additional annual financial cost of 5.6%. After 2 or 3 years the developer will have older homes - commercially damaged goods - and 17% more expensive, which means having to sell for 42% to 47% less in real terms.”

Ortiz’s statements contradict the line taken by Guillermo Chicote, president of the Association of Builders and Constructors of Spain, who is claiming that new build property prices have already fallen enough and won’t fall any more. “You can all forget about prices falling 30% to 40% because I’ll give it to the bank before that,” Chicote said recently at a conference organised by Spain’s Association of Financial Journalists.

JA

What exactly are you telling us here?

I think that Julie is just offering yet more evidence that investors would be mad to be buying santa ana in its current sate. If it wasnt financially viable before the credit crunch ad property slump then it definitely isnt now. I think the intention was probably to pour more scorn on he stupid comments that SARC makes Bear in mind people SARC are encouraging you to remain ordinary creditors and not challenge this assumption. Listen to them and you will end up with NOTHING or a tiny tiny percentage of what you paid Get your lawyers to challenge and take to court to have your contracts resolved and become creditors against the mass - privaleged creditors. THis is the only way you are likely to see your money returned. SAn jose never registered you in the process out of interest for you. They registered us to GET PROTECTION from us by the courts so they could SCREW us all a bit more People need to et up and fight. YOUR FATE is in your own hands but please do not listen to TONY TONY YOU DISGUST ME

Hi Joannie

I dont think things have changed much to my mind.

The first advice was be carefull, get legal representation and make sure your covered, keep track of events and wait for the administration findings.....................make sure that fair play is being exercised and if anything is trying to wrongly influence your interests........challenge it.

I have been doing that and it hasnt mattered what anyone has said, done or threatened, or even if its been said that i am not allowed on a forum page because i dont have a property on that one, or im not agreeing with the heading (ie i want my house), or im being threatened with a solicitor.  All that kind of daft bully boy tactic i have ignored and tried to protect my interests all the way along.  And i will continue to do that as well.....despite some very dodgy advice and attempted influence from the SARC leadership.

At this stage though, i do have a grasp on the world and Spanish housing markets so i can base my decision on the information to hand.

I thank JA but i am not really swayed by newspaper articles which, to my mind, are to sell papers and not to advise me about a situation i  know more about than they do.......why do i know more about it than they do?............cos im stuck in the middle of it with a real vested interest.

 

Thanks all the same though