Private investment and ‘bad bank’ to unlock property loans

FOREIGN private investors could be a key to definitely unlock the property market in Costa del Sol. Since the bank loan shortage in the last years has made it more difficult for national buyers to access the market, foreign investment groups are believed by the Association of Real Estate Agents they will have a crucial role. They are expected to partially acquire the current stock of around 19,000 houses in the province, according to figures by the Ministry of Public Works.  

Besides, the imminent introduction of the so-called ‘bad bank’ – a State-managed entity which will off-load all toxic property assets from banks – is hoped by the Association to free banks from their property stock, benefiting the granting of more loans. The ‘bad bank’ was announced by Economy Minister Luis de Guindos to start operating this very week.