One of the main blocks in the property market at present are some 25,000 new properties in Madrid that will not sell due to the economic climate. The Government has been under considerable pressure to do something, but it is the banks and developers who are leading the way.
They include leading banks such as Santander, BBVA, La Caixa, Caja Madrid, Popular and Banesto who will work alongside the developers involved to offer mortgage financing.
The developers are pricing the properties are 20% less than current market costs. The exact price of the property will depend upon its district in Madrid, but according to the maximum price limits a 100m² flat would not cost more than €320,000.
For its part the Spanish government is considering allowing commercial airlines to use military routes, which would make travelling to Spain easier and quicker. Some experts feel that such a decision could also help to kick-start the Spanish property market.
The move would let commercial airlines negotiate for new routes into Spain. It is expected this would increase the number of holidaymakers and would be investors who would benefit from increased numbers in the holiday rental sector.
However experts are not forecasting a rapid recovery. Bart Gysens, a property analyst with Morgan Stanley in London, forecasts that the Spanish residential market will stabilize by 2011 at the earliest.