About 33.5% of All Tenders Linked to Property

1/04/2014 – El Mundo

February was the fourth consecutive month of fall in bankruptcy trials number. During this period, 618 formal insolvency proceedings have been launched, that was by 39.94% less than in February 2013, according to data gathered by the economic research bureau of Axesor.

February 2013 was the month with record number of bankruptcy declarations since the Tender Law from 2004 had come into force. The month marked 1.029 proceedings

In geographical terms, Madrid led in variation rate with 105 tenders that tapered down by 67.89% in comparison to February 2013 (222 trials). The data suggests that the capital represented almost half of the Spanish total reduction of 411 auctions in regard to the mentioned month in the previous year.

The reduction was enormous in all large autonomous communities. Thus, in the Basque Country the number fell by 56.7%, in Catalonia by 30.15%, in Andalusia by 26.37% and in Valencia by 23.71%.

In reference to sectors, the most significant decrease post the hotels (from 208 to 34 processes, by 83.65% less than in 2013), then the construction (-36.86%) and the property (-60.47%).

However, in general terms, 33.49% of all the tender processes registered in February corresponded to broadly defined ´real estate´. The construction and the property jointly represented 207 formal insolvency proceedings. Another 21.52% corresponded to the trade sector (247 registrered proceedings, 20.63% of all) and manufacturing industry (199 cases, 16.6% of the total).

Accumulated results from January and February 2014 show 1.197 tenders, that is by 32.1% less in comaprison to the same period of time in 2013.

Catalonia, Madrid, Valencia, Andalusia and the Basque Country amassed 67.9% of the total of legal insolvency processes run this year.

Talking about sectors during the first two months of 2014, there have been 399 bankruptcy proceedings in the construction and  the property sectors, by 36% less than in 2013.



Original article: El Mundo

Translation: AURA REE