40% Discounts in Catalunya
April 29th, 2008
With property prices having fallen over the past year, sales of properties in Catalunya have fallen by a massive 42.7%. As a result many developers are sitting with developments that are either completed but empty or had to cease construction at the midway point.
In a new twist the Corporate Real Estate Business (ACd’EI), which consists of a hundred promoters and developers is offering 2,000 flats at cost price in the Catalunya region, as an outlet for those developers who are struggling or unable to sell their flats at market prices.
The solution that has been devised is that the developer passes on the mortgage on the flat to the buyer. The flats are priced between €120,000 and €180,000 and are being sold at 40% less than the original asking price. The flats are mainly located in the industrial area of Barcelona, and in the counties of Vallès Bages, Baix Ebre (Tarragona), the Camp de Tarragona, Girona and Lleida.
In order to offer these flats the Corporate Real Estate Business (ACd’EI) has reached agreement with various financial institutions on fixing the price of the flat and also on mortgages offered with fixed interest rates at around 5%.
The director of the association, Valentí Oliveras, explained at a press conference that “there are many people interested in buying”, and he assures people that this is a good time, principally because the promoters are more open to lower prices. Additionally, Senor Oliveras went on to announce yet another purchase option, which would allow you to buy the property , however, if you then decided that you did not want to immediately live there, then they (the partnership) would mange the rental for you.
There has also been comprehensive insurance cover arranged should you opt for this option in order to help with any potential problems with a tenant not paying the rent. This is to ensure that the buyer is covered.
Full story from lifestylebarcelona.com
