The bad bank offers discounts

Large volumes of property being offered to councils Credit: By-Your flickr

As Spain attempted to recover from the 2008 financial crisis, one area which brought some banks to their knees and saw construction companies disappear was the housing industry.

Boom or bust

It was boom or bust prior to 2008 and bust it was, companies going under and mortgagees unable to keep up their payments leaving a huge glut of finished, unfinished, unbuilt or second hand property in the hands of the banks.

Sareb, which is known as the bad bank was created in an attempt to place all of the unsaleable property in one area and  it was funded by investment from 14 Spanish organisations, mainly healthy banks.

Since that time it has taken on more ‘bad’ property and attempted to sell the stocks that it holds but it still has a huge portfolio, but is due to close for good in 2027.

Large stocks in Almeria Province

One of the largest areas where stocks are still held is Almeria Province and it is now inviting 17 councils in the province to consider taking over land assets with a discount of up to 40 per cent of market price in order to create much need additional social housing.

In many ways, it would possibly be more attractive to some  councils to acquire property already built which can be adapted rather than building from scratch.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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