Popular Abates House Prices by 30%

10/03/2014 – Expansion

“We cut in prices. Your dream house is waiting, grab it now!” – this is the slogan aiming at sales upsurge and found on Popular´s real estate branch´s website.

On average, the bank reduced prices by 12% of all 10.614 marketed properties. Out of the total, 5.332 units are dwellings, a great majority of them is represented by flats (4.265 units), then chalets (700), houses (336) and touristic apartments (31).

Some of the houses are being sold with 1% and some with up to 30% discount. By regions, Andalucía holds 30% of the supply, Valencia 17% and Catalonia 13%. Property in Madrid is scarce (3%).

At the end of 2013, the bank sold management of Aliseda to two foreign funds, Värde Partners and Kennedy Wilson, for €715 million. (…)

Althought the property sales rose in the third quarter of 2013, it seems that new international contacts will allow Popular to sell much more in 2014. (…) Last year, the bank sold 4.289 properties with capital gains of €41 million. In reference to the 2.600 properties transferred a year earlier, the increase was equal to 65%.

At the moment, the value of all assets awarded to Popular reaches €12.768 million, backed by €5.996 million provisions, that gives a coverage of 47%. When it comes to classification, 55% of Banco Popular´s real estate assets are finished houses, 4% is under construction, 37% is formed by land and the rest are financial stakes at Metrovacesa and Colonial, the last one sold in January this year. Furthermore, 70% of the assets back loans granted to construction and real estate companies, 11% refers to mortgages and 4% to equity instruments.

 

 

Original article: Expansión (Alicia Crespo)

Translation: AURA REE

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