Spanish Property Sales: Discounting Works
January 27th, 2009
Property broker, CB Richard Ellis, said Spanish properties it sold via its online auction website were going for discounts of 20-30 percent on average.
While property stocks rise in Spain and sale plummet at the end of a decade-long property boom, CBRE said it sold 43 investment properties, commercial lots, warehouses and plots of land for discounts up to 47 percent since the web site began business in May 2008.
CBRE’s Emilio Miravet, who is running the new project, said most of the assets being sold were distressed properties that banks were trying to offload, or developers bringing new properties to an already-saturated market.
‘The outlook for this year is very good. There’s a large pent-up demand and when we see attractive discounts between 20 and 30 percent, that’s when you see things go really well. ‘With discounts of 25 percent, or greater, demand starts to get more lively’, Miravet said
CBRE said it sold the properties for a total of 9.5 million euros ($12.25 million), almost all in the last three months as the website gained popularity.
Story from Forbes
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