Just to add my bit,
we are a licensed estate agent based in Portugal, so far the 40 percent of our sales that is made up from uk buyers has not been affected by things going on in the uk, but we are planning ahead, if there is a slow down then we hopefully will not feel it as we are allready working harder and marketing more to other different overseas markets.

I do feel the main reason we have not experianced any change in the numbers from the uk, is that people coming here are buying for a lifestyle change, or retierment and dont worry to much. also as we have had a very stable market here in portugal, no major rises or falls, people feel safe investing here, hopefully none of the sudden shocks that other property markets in Europe have experianced.

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www.gekkoportugal.com A guide to living, working and buying property in Central Portugal
www.chavetejo.com Central Portugal Registered Estate Agents AMI 7856

Martinsa Fadesa files for administration

By Mark Mulligan in Madrid

Published: July 15 2008 12:15 | Last updated: July 15 2008 12:15

FT.com / Companies / Property - Martinsa Fadesa files for administration

One of Spain’s largest property companies on Tuesday filed for creditor protection owing €5bn, spurring a Madrid stock market sell-off and forcing banks to admit to an initial €550m in related bad loan provisions.

Martinsa-Fadesa said in a regulatory filing it had lodged a petition for court administration, marking the start of Spain’s largest bankruptcy process since the introduction of new rules in 2004.
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It follows the rescue in March of Inmobiliaria Colonial by creditor banks, which swapped debt for equity held by the controlling shareholders in Spain’s second-largest real estate company.

After about a decade of booming activity, Spain’s residential housing market collapsed last year amid rising interest rates, oversupply and tougher lending conditions. Many small construction companies and property developers have either filed for protection or been absorbed by larger groups. The number of companies entering administration this year has more than doubled compared with 2007, according to lawyers.

Suppliers, meanwhile, have been downsizing. Roca, which makes bathroom equipment, announced this week it was laying off 400 workers. The downturn is also pushing up non-performing loan quotients at Spanish banks, forcing them to step up provisions.

Banco Popular, Spain’s third-largest listed bank, said on Tuesday it had already set aside €100m against its exposure to Martinsa, which it would not quantify. Shares in the bank closed down 9 per cent. Caja Madrid, the country’s second-largest savings bank, is understood to have made provisions of €250m, while La Caixa, the largest, said it had set aside €192m to cover its €700m exposure to Martinsa.

The distressed property company, created through Martinsa’s debt-financed €3.5bn takeover of Fadesa last year, said on Tuesday its board had decided late on Monday to file for administration after failing to raise the €150m of fresh equity needed to complete a €4bn debt refinancing with banks.

Its search for the funds included a petition to a government credit agency that helps small, innovative businesses and artistic ventures such as film production.

Martinsa told regulators it had insufficient cashflow to meet interest payments and pay suppliers. It blamed the “clear recession that the Spanish economy is suffering at the moment”. However, it said it remained “viable”, with assets valued at €10.8bn at the end of last year. Analysts, however, said a land bank valued at €6.6bn by independent consultants, was worth a fraction of that in the current market.

Martinsa’s filing added fuel to a heavy sell-off on the Madrid stock exchange, with Spain’s highly-leveraged construction, infrastructure and property groups suffering the most.

Ferrovial closed down 7.4 per cent, while Sacyr Vallehermoso lost 8.4 per cent. Inmobiliaria Colonial dropped 11.6 per cent

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The Pain is being felt in Spain.

How vulnerable are Spanish banks?

Spanish Property prices falls and slowing GPD could have significant effects on Spanish banks. Over the last decade, the share of property loans has risen from 40% of total private non-financial sector loans to 60%, equating to a staggering €1 trillion, around 100% of GDP and a third of banks’ total assets.

If GDP falls as Capital Economics predicts, bad debts could treble, but it does not expect this to cause major problems for the banking sector. While the figures initially look serious for banks, the quality of their assets suggests things may not be quite as bad:

- Spanish banks have generally not been involved in the type of sub-prime lending that crippled the US.

- The average loan-to-value ratio (LTV) does not appear to be worryingly high, and unless house prices fall very sharply negative equity should not be widespread.

- The Bank of Spain has prevented banks using off-balance sheet vehicles.

- 20 percent of Spanish banks’ lending is abroad and regarded as having a low default risk.

- 80% of banking lending is still financed by retail deposits (compared to Northern Rock’s 30pc in spring 2007).

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If the downturn is more major than predicted this will cause problems. A combination of slowing economic activity, falling Spanish house prices and rising unemployment could result in a considerable increase in bad debts.

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Spanish property prices have fallen by 30% say estate agents

Spanish property prices have fallen by 30% since Spain’s economic downturn began last year, says Santiago Baena, president of the API real estate agents association (Colegios Oficiales de Agentes de la Propiedad Inmobiliaria).

Speaking at a recent conference on Spain’s property crisis, and reported in the Spanish press, Baena said that the adjustment in Spanish property prices currently underway is brutal, and that the situation this year is radically different to last year, when the sector was already absolutely paralysed.

Read more at at our Internantional Mortgages Blog

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Hi Roxanne,
We could be interested please send details,
Aztec

[quote=roxanne;55612]Hi My name is Roxanne,
Hello Roxanne

We are still running Uk property exhibitions and have Investors still wishing to purchase in Spain. could you please forward any relevant information on properties new and resale you may have on your portfolio for disposal.

Kind regards John latham

Hi Roxanne can you please give me your details .

John latahm . euro select estates sl

can you give me more infor

Hi,
I have to invest in real estate will it be safe to invest in Spain ?

Hi Just do your homework ! Plus If you are expecting a fortune overnight forget it. Murcia regions seem stable .I was in Pilla de la horadada last week if anything prices are stable and rising . But its the old saying If you have cash on the hip you can buy the bargains . If you have not bought in Spain before just get a decent man to check everything out to make sure all is kosher.

Regards, John

Euro select estates sl.