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Will there be Credit for Housing After Coronavirus?

The housing sector is facing an added challenge to the economic crisis and the decline in sales, namely, the more than likely tightening of credit for both developers and individuals, to counter the growth in defaulted payments.

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The housing sector is facing an added challenge to the economic crisis and the decline in sales following Covid-19: the more than likely tightening of credit for both developers and individuals, to counter the growth in defaulted payments.

Unlike what happened during the real estate expansion prior to the crisis that started in 2008, the recent period of growth in the residential market has been characterised by a low level of credit financing. The volume of loans to the construction and property development sector has been consistent, according to the Bank of Spain, with relatively low levels of activity in the new build sector.

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