The crisis unleashed by Covid-19 is going to have a direct effect on the access to loans for real estate development, which may fall by up to 25% in 2020 from last year’s level. That figure would mean a return to 2017 levels, at most, according to Expansión.
Banks are still interested in financing real estate projects due to the induced business that exists behind them, in other words, the conversion of such loans into mortgages for the end buyers of homes, which typically sees them acquire long-term clients (for between 20 and 30 years), with contracts that include the receipt of salaries, for example.
Read the full article in Spanish.
