According to Premier Marbella news sources, a high percentage of the Spanish property sales n 2013 are without mortgages. The president of Sabadell Bank Josep Oliu has indicated that 75% of the properties sold by this entity were paid for without mortgages as very few buyers nowadays are seeking credit.
According to the latest statistics from Spanish notaries, the number of Spanish property sales paid for in cash is significantly increasing. The percentage of property sales in May with a mortgage recorded an all-time minimum according to the general council of notaries, with a rate of 29.2%. This data has shown a significant decline in recent years from the highs of 2007 when this percentage exceeded 60%. On the other hand, the percentage of finance for property purchases fell to 75.9%.
Leading Marbella property specialist Romano Keogh commented that the adjustment process of the economy in Spain is well under way, estimating that real estate assets have been devalued by almost 50%, salaries have taken haircuts and sectors such as automotive and construction are looking at exterior markets due to the drop in demand. Foreign investment has landed in real estate and from my experience transactions take place when supply meets demand. The reality is that there are areas in which there is an oversupply of properties that will take years to liquidate, but in others the demand already exceeds supply.
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