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Large Real Estate Companies Strengthen Their Financing As Lending Conditions Get Tougher

Property developers such as Aedas, Quabit and Realia, as well as Socimis such as Colonial, have taken advantage of the break during the lockdown to negotiate new conditions with their financial entities, to maintain levels of indebtedness that were unprecedented in other crises.

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Image from Morning Drew.

A crisis in the shape of a U, V or the Nike symbol would devastate the Spanish real estate sector, as it would many other international businesses and markets. However, while the nature of the recovery to pre-Covid levels remains unknown, that is not the case with one of the most negative consequences of the pandemic: the restrictions over credit.

According to a recent survey published by the Bank of Spain, financial institutions anticipate a tightening in the criteria for granting loans in all segments, despite the liquidity injection from the European Central Bank. And all of this, in a scenario of impoverishment in the wealth level of families and companies, which fell in the first quarter to €1.5 billion euros, coinciding with the start of the coronavirus pandemic.

Read the full article in Spanish.

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