R.E. Investment | Zentrica Real Estate Investment Club Blog

Spanish promoters are thinking how much money are they going to lose

Many of them will have to sell with a discount of 20% if they want to liberate house stocks and they don´t invest because of the credit close strategy of the banks.

In Spain the studies are offering results where the prices are a 30% above having to be reduced in the next months at least a 20%, rents may do sustainable the 10% but never know what can happen.

The reality is that the prices must go down a 30% to reactivate something the consum, and many companies in cities like Madrid or Barcelona are selling with a discount of 40% and in the coast the prices are being reduced a 60%, many investors are buying now, knowing that is the moment to negociate.

In the Costa de Levante, last year you cannot see a prices below of 150.000 euros, now you can see similar Real Estate below of 95.000 euros. They need to sell now and nobody want to buy it. The bubble crash is on the air, but we thing that after September will be a decisions moment to analize possibilities and when investors are going to offer little prices to invest their profits at the end of the year, maximizing profits.

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Spain need to be on the edge in Real Estate Invesment focus

From the Spanish Goverment to the Real Estate Investors, all the players in Spain, need to be on the edge in Real Estate Focus, really the Real Estate Promoters companies are really fine in comparison with companies from other countries but not in Real Estate Investment.

The Spanish Real Estate Investment market need to up one step further and have professional players, more than now having the experience of anglo-saxon companies.

We can saw in last SIMA the need of companies to work with investors, not with final buyers, but to work with investors a company need to know how to work in this league, and what and how to offer products to investors, looking for an exit strategy or at least a good yield annually.

This point have not been worked by the Spanish companies so when they are trying to sell all the final product stocks they cannot do it, because the secret is not a good cheap only, the secret is a good yield and a good exit strategy for the money, and when you dont have an exit strategy you can work with a cheap price.

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Prime zones like Barrio Salamanca in Madrid are more valuated by investors

Prime zones in all cities are the most valuated by investors by the little impact of Real Estate Market fluctuations. In Madrid, prime zones like Barrio de Salamanca or Paseo Castellana are the main streets where investors want to adquire Real Estate Assets (where the price per square meter may be from 8.000 to 12.000 euros).

There is a big contrast with the beach areas where the Real Estate market fluctuation in very accentuated and where the price of these assets are, in many cases, purchased with a 40% off discount. These points are mainly beach villages like Gandia or Oliva in the Levante area (East of Spain).

The more attractive assets to invest are products with direct yield like office buildings or commercial centers, like malls or similar and the medium yield percentage may be between 5% and 7%.

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Testing the Zentrica Real Estate Investment Club Blog

We are working in the last details to lauch the ZREIC Blog english version.

Our ideas is to offer direct information about the Real Estate Investment possibilities in the Spanish and Americas markets.

More than 100 people have asked us when we can offer support in English for invesment companies in the world. We think that the next year is going to be a great year to try new strategies in the Real Estate market and with the Real Estate estrategies.

Thank you for your interest in Zentrica Real Estate Investment Club and …… we are on the air.