Spanish Property Developers up in arms

Developers are also up in arms in Andalucía over the banks plans amid accusations of 'unfair competition'. High Street banks such as Bancaja are now offering mortgage terms for their own properties way below normal conditions available to everyone else. One bank is offering mortgage repayment terms of up to 50 years, 90 percent finance (of the property's value) and for the first 3 years, the buyer pays no capital or interest. Then there are other banks offering finance on 100% of the value of the properties they are holding.

Jose Prado of the Provincial Association of Developers complained 'They should offer the same conditions to all buyers, but they don't'

Proof of this he claims, is the failure of the collaboration set up last year by the Junta de Andalucia and the banks to attempt to sell the ever growing stock pile of properties. Since its launch only 10 sales have been finalised.

Prado claims that this is due to the excessive requirements for individuals purchasing property from somebody else.