Banks are selling of their stock across Spain
Since the financial crisis, many properties were taken back by the banks as owners struggled to keep up with their repayments. Today, a lot of bank stock is on the market, many thousands of properties, at prices well below market-value as the financial institutions that caused the crisis with their irresponsible lending attempt to claw back some of their losses.
So, are bank repossessions a good buy? Property portal idealista has analysed thousands of bank owned properties to see what you are likely to get.
Location
The majority of bank owned properties appear to be in small to mid-sized towns around the country. In fact, 53% of bank-owned properties currently being marketed for sale are in towns with a population below 20,000. Only 13% are found in provincial capitals.
- 5% is located in towns of less than 1,000 people
- 17% is located in towns of between 1,000 and 5,000 inhabitants
- 31% of bank-owned properties are in towns with a population between 5,000 and 20,000
- 19% can be found in towns with a population between 20,000 and 50,000
- 11% of bank stock is in towns with a population above 50,000 but below 100,000
- 13% is found within towns with between 100,000 and 500,000 inhabitants
The remaining 4% can be found in larger cities with populations above half a million.
Murcia is the province with the most bank stock on the market in relation to the total number of properties currently for sale. 13.7% of all homes sold in the region are sold by banks. Other areas where more than 10% of stock is bank owned include: Toledo (12.8%), Almería (12.1%), Castellón (12%), Lleida (11.4%) and La Rioja (11%).
Provinces where less than 10% of property for sale in bank owned include: Lugo (8.7% of the stock), Tarragona (8.1%), Valladolid (7.9%), Zaragoza (7.8%), Huelva (7.5%).
In the province of Barcelona, 3.2% of the stock of available homes is bank-owned, while in Madrid it stands at 2.2%. The 3 Basque provinces are the territories in which the ratio is lowest, with only 1% of all housing on the market in Guipúzcoa and Vizcaya belonging to a financial institution, and 1.1% in Álava.
Prices
Of all the bank stock currently being marketed, 63% is on sale below 100,000€. A further 22% is on the market for between 100,000 and 150,000€. Property on the market for between 150,000 and 200,000 accounts for 8% of bank stock. Only 5% of their properties are up for sale for between 200,000 and 300,000€. Only 2% have a value of more than 300,000€.
Size
The most common size amongst bank-owned properties for sale is between 80m² and 100m², making up 25% of the total bank stock. Also at 25% are those properties with an area of 100m² to 140m². Properties with an area of between 60m² and 80m² account for 24% of the stock. Properties smaller than 60m² make up 10%. 9% have an area from 140m² to 200m², while those with an area above 200m² account for 8% of the total bank stock.
In summary, you are not going to find a super-huge-luxury-apartment in the middle of Málaga for a bargain price. The majority of bank stock is small-to-average with more than half of it having an area under 100m², and most of it is out of the main population areas.
Don’t be put off though. The properties are usually well below market value and some are also quite new. There are, however, many dilapidated properties and many in need of serious reform. Be sure you know what you are looking at before making an offer and make sure you get the chance to visit the property first, something that is not always possible with auctions, for example.
