English Danish Nowegian Swedish English

 Properties in Spain

Search by Reference Number


  Property Search >>

 Popular Categories
 Apartment 12963  
 Villa 8850  
 Townhouse 3050  
 Plot 1304  
 Commercial 1283  
 Studio 219  
 Golf Properties 2275  
 Bargain Properties 1103  
 Bank Repossessions 330  
 Luxus Property Investment 3822  
 Beach Front 2407  
 Hotel, Hostel, B&B 168  

List of popular categories  
 Popular Provinces | areas
 Malaga 24493  
 Alicante 1942  
 Cadiz 425  
 Mallorca 351  
 Granada 206  
 Almeria 108  
 Valencia 96  
 Murcia 48  

 Popular Cities
 Estepona 2295  
 Marbella 1521  
 Nueva Andalucia 1228  
 Fuengirola 971  
 Puerto Banus 901  
 Benahavis 894  
 Calahonda 695  
 Elviria 617  
 Mijas 569  
 San Pedro De Alcantara 530  
List of popular cities  
 Newsletter Subscription
Enter your email address
Huelva<br>Costa del la Luz Cadiz<br>Costa de la Luz Malaga<br>Costa del Sol Granada<br>Costa Tropical Almeria<br>Costa de Almeria Murcia<br>Costa C√°lida Alicante<br>Costa Blanca Mallorca Tenerife Gran Canaria
 Home » Spanish Property Market Gets Boost From European Central Bank

 Spanish Property Market Gets Boost From European Central Bank  


Spanish Property Market Gets Boost From European Central Bank

The European Central Bank (ECB) has announced its own version of quantitative easing (QE) that will support Spain’s property market with easier credit conditions, argues Gonzalo Bernardos, a real estate expert and professor at Barcelona University, in an article for the Spanish daily El Mundo.

The European Central Bank boost the Spanish property market


In late January the ECB announced it would be embarking on a programme of QE lasting until at least September 2016, injecting €1.14 billion into the Eurozone financial system by purchasing public debt.

This move is expected to lead to lower interest rates for bonds in most Eurozone countries, and to a considerable increase in their banks’ liquidity and lending potential, argues Bernardos. “The top product will once again be mortgages lent to private individuals to buy homes,” he writes, whilst forecasting that outstanding mortgage lending will increase 8 per cent this year, having fallen 4.2 per cent in 2013, and 3.5 per cent last year.

Expect to see mortgage lenders battling it out for market share this year for the first time since the bubble burst, just like they did in the boom. This time around banks are expected to be more sensible. It won’t be a case of getting any old client, just the good ones,” explains Bernardos. “For most banks, these will be families whose monthly income exceeds €3,000 with some banks reducing this to €2,500. This means that those families who don’t reach this figure will have serious difficulties getting a mortgage.”

Targeting the best borrowers, he says banks will start to reduce their spread (the difference between base rates and the lender’s rate) to 0.75 per cent, and extend terms to 35 years. We can also expect to see more bridging loans, 100% LTVs, and lending that takes repayments above a third of disposable income, which experts do not advise.

“The greater access to credit, together with the shortage of supply in upper/middle-class areas in large towns and cities, will mean that in 2015 transactions will increase by approximately 20 per cent, and that property prices go up by around 5 per cent,” predicts Bernardos. “A rise that will mean an end to the most significant property crisis in Spain’s modern history, and the start of the recovery period.”



Spain Property via RSS Feed

Coronavirus - Spain welcomes tourists back as emergency ends
Flight to Spain for free
Secure your residency in Spain in time for Brexit
Spain residence permit for Non-EU citizens - Golden Visa
Buy to Rent
Mortgage Direct
Properties - East of Malaga, Competa, Axaequia, Spain
Properties - Costa Blanca, Spain
Properties - East of Malaga, Costa Tropical, Granada, Spain
Ejendomme - Almeria, Spain
Properties - Mallorca - Bellares, Spain