SPANISH banks are in possession of a huge amount of excess property. The group International Finance Analysts (Analistas Financerios Internationales – AFI), claims that the banks own property worth an estimated €90 billion.
Due to the surplus, increased needs to find profits in a low interest-rate climate and imminent arrival of new regulations have led Spain’s largest six banks to change their strategy.
Rather than concentrating on helping developers they have provided with financing to sell their property, banks are placing priority on moving their stock of repossessed homes.
In fact, over the first nine months of this year, Santander, BBVA, Popular, Bankia, Caixabank and Sabadel have between them shifted more than 40,000 properties, meaning they have sold 300,000 since 2012.
Although last year the six banks aided the sale of 68,000 homes, this year their strategy has been to sell less for developers and move their own properties to ensure more profits.