Spanish Property Market Optimism from J.P. Morgan
09 May 2013
There was good news for the Spanish property market in a recent report issued by J.P. Morgan Chase, an American investment bank, the bank affirms that both the authorities and the private sector are clearly willing to negotiate and sell assets at low prices to meet their liquidity needs. The bank emphasises that up to now banks were reluctant to sell assets for less than their provisioning levels as they did not want to generate additional losses.
The bank predicts that over the coming months the authorities, as well as banks and individuals, will sell assets because they "are clearly willing to drop prices to make a sale". It emphasises that: "In our view banks have analysed the impact of tax increases and the end of tax deductions, and have become more realistic about the future value of these assets".
J. P. Morgan also points that the market is beginning to see properties for sale at below the cost of construction, a trend which, in its opinion, will convert Spain into "a buy ers´ country full of opportunities". However the bank believes that the recovery of the Spanish real estate sector will depend on foreign buyers and Spanish property investors , given that credit has dried up in Spain.
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