Spanish banks funding double discounted homes…

The lush suburbs of Madrid are riddled with housing projects, ranging from first-timer basic to WAG-style and some pundits reckon most of the estimated 25,000 apartments on offer are not going to sell in the current economic climate in Europe…

Problems for the developers then, as many go to the wall, and for the bankers who have stuck their money into the projects. As is often the case in Spain, the blindingly obvious is quickly spotted and in a bid to kick-start the country’s ailing property market, developers and banks are teaming up to offer discounts on new-build properties.

Leading banks such as Santander, BBVA, La Caixa, Caja Madrid, Popular and Banesto, are planning to work with developers to offer mortgage financing on the unsold key ready properties in Spain.

Developers are offering properties at 20 per cent less than even the present depleted market. The exact price will depend upon its Des Res Rating in Madrid, but a 100-square-metre apartment would be less than €320,000. A discount on discounts with a built-in mortgage would tempt even the ultra cautious?

Despite all the doom and gloom there are lots of good bargains available along the Costas at the moment and with the market set to pick up again sometime soon, now could be the best time to invest.

Unlike the UK Government that is “evaluating options to help the property sector”, the Spanish government is also playing its part in helping the housing market by allowing commercial airlines to use military routes, as reported on Homes Worldwide yesterday.

Using these more direct routes will make travelling to Spain easier and quicker and may help to kick-start the property market. An increase in the number of holidaymakers would also help the holiday rental sector.