“We have just refinanced a €50 million loan with a grace period of 12 months. The banks are being amazingly positive”. Those were the words of one senior executive of a real estate consultancy regarding the role of financial entities in helping the real estate business manage the impact of Covid-19. “It has been a dream response,” said one large owner of commercial properties in Spain and Portugal.
The role of the banks, both Spanish and international, is going to be key to ensuring that the Spanish real estate sector does not repeat the crash experienced between 2008 and 2013. “The banks are going to be part of the solution and not part of the problem, although late payment and over-indebtedness will return”, predicts Juan Velayos, Managing Partner of Alantra.