Iona Napier
WHILE the Spanish property market recovers and houses begin to fly off the shelves, some properties will not be sold, says rating agency Fitch.
There are currently 600,000 brand new but unsold houses in Spain, and the agency predicts that some 150,000 will be ‘practically unsellable’ due to being ‘poorly located’.
The properties, which have lost around 67% of their value, are located in areas where the economic recovery is predicted to be slower.
On a positive note, the depreciation of properties has stabilised and, with unemployment falling (now at 22.4%), house purchases are on the rise.
No,rating agency Fitch did NOT say “While the Spanish property market recovers and houses begin to fly off the shelves”; that’s a bit of spin added by yourself for whatever reason. Rating Agency Fitch did say: “We think the distressed property market in Spain is unlikely to share in the benefits of the wider recovery any time soon” and “many poor quality residential units are still vacant and unsellable in peripheral, economically weak areas” and “For mortgages with OLTV (original loan to value) above 80%, the simple average loss severity rate is 63% for 2014-1H15”. They talk about “gradual recovery” – not flying off the shelves.
“… houses begin to fly off the shelves”
Wow, so wrong.
Let’s not forget R R Acuna’s recent report which says there could be 657,000 unsellable homes due to location and condition out of 1.6 million homes currently for sale in Spain. They’re not ‘flying’.
Maybe one use could be to house migrants temporarily?