Banks continue to scrutinize real estate projects before deciding to finance new building construction and require companies to have confirmed buyers for most homes.
The requirements imposed by financial institutions to ensure the solvency of the operations in which they embark in these uncertain times are forcing companies to adjust their construction projects to stricter criteria, as explained by the president of the Promoters Association Real Estate of the Region (Apirm), José Ramón Blázquez.
Although in the current situation there are no liquidity problems and the financial market is operating with agility, “the tightening of banking conditions” together with “the prudence of promoters” is conditioning the launch of new developments. However, during the past year the rhythm of fiscal year 2019 has been maintained.
As explained by Blázquez, the conditions imposed by the banking entities do not allow obtaining financing for any work until most of the homes are sold, among other requirements that ensure the solvency of the operation.
Given the uncertainty created by the pandemic and the difficulties of young people in obtaining the necessary savings to buy a house, José Ramón Blázquez defends the implementation of the guarantee that several autonomous communities are claiming, including Murcia, with the aim of facilitating the access to the first home. The promoters want the guarantees to be guaranteed by an insurer in order to open this alternative route of financing.
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