Words: Ashley Rigg
Published: 3rd February 2011
*Spanish government to promote property in London
According to a report on news platform Typically Spanish,
the Spanish government is planning an international conference in London to
promote “quality” distressed properties.
In preparation for the event, the Ministry of Development
has asked Spanish banks and real estate promoters to assess which units in
their huge inventories of repossessions are most suitable for the international
market.
Inventory holders are also being asked to select units on as
yet undefined quality criteria.
The plans for the event are in the early stages. No date and venue has been set and Secretary
of State for Housing, Beatriz Corredor says she is keen to keen to support and
engage with those in the real estate sector who have no problems with “advance
evaluation”.
The success of the event will depend on how the government
defines “quality” and “advance evaluation”.
Even if the selections only include completed properties in
prime coastal locations with proper title, planning and zoning, there is still
the problem of price transparency.
With
no official figures on actual sold prices, how will British buyers or their
representatives know whether they are getting a good deal? A 40% discount from 2007 may look good on
paper, but the event is a PR disaster waiting to happen if the properties turn
out to be worth 50% less than their 2007 prices.
Without independent valuations through the help of surveyors
and estate agents, the event could turn into an empty promotional exercise for
the banks that does more long term harm than good.
We all know about some the shocking property “deals” on
offer through a number of Spain’s regional banks. Let’s hope the Spanish authorities get this
one right.
Source: Global edge
User Comments
It is more than proven that both, banks and government, have no clue about real estate. It seems as if they are trying to re-invent the wheel. They should finally start to realise that there are quite a few estate agents around who are qualified and experienced. If even they do not take us serious, how can the potential buyer do?
Fred van Krimpen,
ELITE Inmobiliaria
The Government would be better getting the Ministry of Housing in order, by giving potential buyers the information on pricing they need to make a calculated decision.
The market requires credibility and transparency, not silly international promotions.
Mark,
First Property Choice