Over the last two year with the economic crisis in the world and our three criminal cases in Marbella under the names “Ballena Blanca”, “Malaya” and “Hidalgo” have the prices for property Marbella and apartments got down. I have write about many of the problem we have in Marbella. The problem is so many for a seller; first if he get a buyer, then hope that not the buyer’s lawyer say to his client – I think the apartments don’t has the building license or that the prices maybe is going done little more and in the end try to find a banks who want to give a mortgage, the Spanish banks don’t have any money more. The English news paper do also a lot by writing that the prices has going down 40 – 50 -60% in Spain, where??? Where do we asking the client. A property in Marbella has maybe got down 10 – 15 % over the last two years. The most of the sellers say – then do we not sell now and wait some year and see how the market are then. Marbella apartments or villas are a good investment over some year. Now can we se some light in the tunnel, Marbella Town hall have more or less sorting out all illegal licenses problem, the banks are slowly starting to get new mortgage and the buyer have understand that the prices is not going down any more. Here is some of the article I have write about the problems in Marbella.

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A couple of weeks ago come news that Dubai World, which is behind Dubai’s extravagant construction of artificial islands and giant skyscrapers, suspend payments in six months.

Because of the massive State interference in the company has data led to speculation that the Dubai state should halt payments, or at least that the state is unable to guarantee Dubai World’s commitment.  The conglomerate Dubai World has asked for debt restructuring and extension of credit from lenders to May 2010.

More problems, Nakheel, a property development company owned by Dubai World, reported during its first six months of its fiscal year broken a loss of 13.4 billion dirhams. This corresponds to a loss of 3.7 billion U.S. dollars.

Last week had Dubai World talks with a number of banks to restructure 26 billion dollars in debt, which includes a bond for 3.5 billion U.S. dollars issued by Nakheel. The bond will expire on 14 December. The government of Dubai announced that it will pay 4.1 billion U.S. dollars to cover the liabilities of property developer Nakheel.

Every week come new information about the finance crisis in Dubai, and in this new finance crisis are all the banks in the world involved in.  Every bank around the world has borrowed out money to Dubai spectacular building companies and the other building project in Dubai like The World islands, Waterfront, the subway, the ski slope, Palm Deira, Maritime City and many more fantasy project. Now have the banks understand there that they maybe don’t going to get the money back. The rich oil states around Dubai are not willing to pay the bill; they are going too asked for debt restructuring and extension of credit.

The affect are, that our mortgage in Spain and Europe is going to be higher and no new mortgage to clients. So here in Marbella and the rest of Spain, it’s going to be more apartments and villas for sale on the market to lower prices, the banks have to take over more properties which they must sell to any prices, so the prices is going down more.

Related articles;

http://www.sundream-estate.com/blog/2009/12/02/a-property-in-marbella-is-not-for-the-spanish-banks/

http://www.sundream-estate.com/blog/2009/05/27/the-worlds-largest-real-estate-crash-league/

The Spanish banks have starting to set up real estate companies and try to sell there huge stock of properties they have to take over in this economic crisis. But the bank is bank, not a real estate company, they are so wrong in what they do, they are sitting in Madrid or Barcelona and they don’t know understanding way it is so high prices of villas and apartments in Marbella.  I read this good article in OPP about the problem. (OPP – overseas properties professional)

Spanish Banks should be better Estate agents

Demonized by agents for keeping prices artificially high to avoid losses, or making it harder for agents to access distressed deals, many now feel that Spanish banks must become better estate agents if the market is to recover.

Ian Waudby, chairman of investment consultancy Crest Group International, observes that the companies set up by banks are slowly making it easier for foreign buyers and agents to access stock; but he stressed that buyers need a quicker response from these companies and a faster sales process.

“The properties need to be packaged with mortgages,” he told OPP. “The websites aren’t bad but if you try to make an offer you won’t hear anything back. CAM is the most organized at the moment but by the middle of next year they’ll all be offering the same thing.”

The price is wrong

Discounting is central to the current bank-owned property stalemate, with agents saying they’re either not big enough or only available for too short a period of time – Banesto, for example, is offering 40% discounts but only for November.

“There isn’t enough desirable Spanish property at the distressed prices that people want,” said Inez Rix, owner of Direct Auctions. “The demand is there but even if people see their ideal property they aren’t prepared to pay for it if it isn’t cheap.

“We don’t bother with the banks because their prices are higher than those of the private sellers and they also charge high legal fees. If they’d knock €20,000 off their prices we’d sell their property right away – they are keeping prices artificially high and are being extremely unrealistic.”

Mortgage obstacle

Mortgages are still a major barrier, with banks either reserving the best products for their own stock or not making them available at all. “It’s hard to get mortgages still and bank-owned properties need cash buyers,” said Bob Callan of prime Marbella agent Callan Developments. “A lot of people expect a bargain from the bank but can often get a better deal from an individual distressed seller.”

Pro-active banks that price realistically will see more profit than those who wait out the market, according to Rix. “I think the market will force them to lower prices eventually,” she said. “Everything’s about two years behind what it should be and I expect they’re sitting on an awful lot of stock. The big banks such as Santander could probably sit on it for 20 or 30 years but the smaller ones can’t. There aren’t enough buyers at the moment and they may have to bite the bullet and get rid of their properties.”

Most agents OPP spoke to agree that the sooner the banks bite the bullet, the sooner the Spanish homes market will recover.