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The Covid Crisis Will Cause the Defaulted Loan Balance to Soar by €80 Billion

Investors expect that at least 50% of the loans granted to overcome the pandemic will go bad, which will raise the default rate to 7%.

The Covid economic crisis will generate a significant increase in the portfolio of doubtful loans (NPLs and REOs), whereby generating a business niche for real estate investors in 2021.

According to Eduard Mendiluce, CEO of Blackstone’s companies Aliseda and Anticipa, the current NPL volume in Spain as calculated by the banks of 60,000 million euros will soon increase by another 80,000 million euros due to the defaults generated by the Covid crisis.

Read the full article in Spanish.

B-Exclusives

New Build Home Prices in Madrid Grew by 11% in 2020

The average ticket for new build homes continues to exceed and stand out compared to that for second-hand homes, something that has not happened since Q319, according to data from the Brains Re platform.

Who Are the Construction Kings in the Balearic Islands?

Ten of the major real estate companies, including Taylor Wimpey, Metrovacesa, Aedas and Vía Célere, are going to deliver nearly half of the almost 2,500 homes that are scheduled for completion on the islands this year, according to Brainsre.

The Lowdown on the Decrease in Rental Prices in Madrid Post-Covid

The price of rental homes in Madrid has decreased for the third consecutive quarter, although the average asking price still exceeds 1,200 euros per month, according to Brainsre.

Ranking of Property Developers in Barcelona By Number of New Homes They Plan to Complete

Five property developers lead the new-build residential market in Barcelona and neighbouring towns, according to the big data platform Brainsre.

Latest news

The Community of Madrid Seeks Investors to Develop 170,000 m2 in Madrid Nuevo Norte

The Community of Madrid has opened an office to advertise to investors twelve plots of land spanning 170,000 m2, where they may develop innovation hubs, business schools and sports centres.

Spain’s Real Estate Directors Earned €13 Million During the Year of Covid

The largest cuts were applied at Merlin, whilst Mr Herrera Oria, from Árima, saw an exponential increase in his salary thanks to the variable element. Félix Abanades, from Quabit, which is in the process of being absorbed by Neinor, earned 15% more in 2020.

Metrovacesa Will Not Participate in Madrid’s Plan Vive and Aedas, Neinor and Vía Célere Have Their Doubts

The property developer controlled by Santander and BBVA explains that rental is not part of its core business; whilst the other developers have not yet decided what to do.

The First Social Housing Socimi in Spain is Created

The Socimi Primero H will start life with 170 homes for social rental; its founders want to take the company public within the next two years.