Spanish property valuations are causing friction between banks and investors.
The Financial Times revealed financial institutions have, on occasion, refused to sell real estate assets because the price offered by the buyer has been considered too low.
Wences Bunge, head of Credit Suisse’s European real estate group, said “Sellers have not adjusted expectations to the new reality. But I believe we are starting to see that reality.”.
Wences also pointed out that experienced investors are staying away from Spain’s property market and he does not expect this to change in the next 12 months.
According to Jones Day in Madrid economic uncertainty is the main reason why buyers may be postponing their purchase.
Meanwhile, delegates at Reuters Global Wealth Management summit were told that property prices in Spain’s coastal regions had reached rock-bottom and that the number or transactions was starting to show signs of recovery.