Unemployment is bad news for Spanish property

AS nearly six million Spanish residents are now unemployed, the Spanish property market continues to be saturated with unsold homes.

The property sector is in need of domestic activity in order to increase and move distressed assets. While foreign investors are continuing to be active in Spain, they are increasingly opting for modern, new developments as opposed to many of the toxic real estate units currently being promoted by the bad bank Sareb and other financial institutions.
For Spain’s government, finding a way out of the crisis could prove difficult and officials have recently come under fire for youth unemployment statistics.
However, in order areas Spain is seeing signs that other parts of the economy are increasing. The International Monetary Fund (IMF) has recently declared that financial reforms in the country are on the right track, with the clean-up of undercapitalised banks reaching an advanced stage. The bad bank Sareb continues to receive the distressed property from the banks that are failing and finalising agreements to manage the transfer of assets.