Property sale in Spain

Barcelona Meeting Point to hold a reduced cost property fair

Following the recent example of lCaixa Terrassa and Procam, the subsidiary of Caixa Catalunya, which decided to sell some of its new flats at a discount of 30%, Barcelona Meeting Point presented its plans to hold a low cost property fair in which new and used properties could be bought with discounts of 30% or more on their original selling price.

Under the slogan ‘everything at the best price’ estate agents, property developers and private sellers are invited to occupy the stands at the real estate fair which will take place between the 12th and 14th June this year. Some banks will also be present so that people can apply for mortgages.

The only requirement for those who want to occupy a stand is that their property prices must be reduced by at least 30% and the original higher price must be indicated. Each stand will occupy an area of 10 metres squared and will cost 3,500 euros. Stands can even be occupied collectively (for example various private sellers could rent one space).

Empty flats for sale in Spain

Yesterday the Minister for Housing, Beatriz Corredor, placed the number of empty new flats on sale at 650,000. At a meeting of Tribuna Barcelona, Corredor presented the government’s plan for the rehabilitation of properties 2009-2012 for which the government has put aside 10,000 million euros.

Corredor urged Catalan business men and women present at the meeting to opt for the rehabilitation of existing properties rather than to build more new ones. She also pushed the idea of renting properties and said that 24,000 Catalan families had benefited from financial incentives provided by central government to help them rent a property to live in.

Corredor said that the rehabilitation of properties was a way of helping the construction sector and also a way of modernizing the Spanish housing sector.

The rehabilitation plan forecasts that up to 470,000 properties could be renovated creating 75,000 new jobs.

She also reminded those attending the meeting that the strategy of large construction companies during the property boom over recent years had been to carry out ‘extensive’ activities which meant that they had acquired high levels of debt. She said that while in Spain only 20% of construction activity was aimed at the rehabilitation of existing properties in countries like Germany more than half of construction activity was destined for the rehabilitation of properties.

Corredor also showed her support for widening the private rental market. She said that in Spain only 11% of people rented a property to live in while in Germany this figure rose to 57% and in Holland it was 47%.

However, she also supported the idea of modifying the law on renting properties which would strengthen the legal rights of landlords.