Here’s the translation: “Purchase of Occupied Properties: Own Funds and the Impossibility of Appraisal According to Tecnotramit.”

In Spain, the phenomenon of occupied housing continues to raise concerns in the real estate market. More than 20,000 occupied properties are currently available for sale across the country, according to data from the Idealista portal. Tecnotramit, a company specialized in the sector, highlights that this context significantly complicates obtaining a proper appraisal of these properties, making it difficult to secure mortgage financing for their purchase.

Carles Solé, coordinator of Mortgage Formalization at Tecnotramit, warns that most transactions involving these homes are carried out by investors with significant purchasing power. These buyers, who do not require external financing, prefer to avoid the lengthy legal process that may accompany the situation of the property. Additionally, many have professionalized this type of purchase, relying on the support of lawyers or mediators to facilitate quicker agreements.

Although this submarket represents an anomaly in the Spanish real estate system, Tecnotramit emphasizes that it remains active and poses various challenges for housing investment. The lack of legal protection surrounding property, along with the variety of investment alternatives, affects the willingness of potential buyers. Nevertheless, acquiring a home as a primary residence is seen as a safe investment, as buyer satisfaction is not solely measured in terms of profitability.

Future expectations for real estate demand are optimistic, especially in cities like Madrid and Barcelona. However, Tecnotramit notes that Madrid has created a more attractive environment for investors, thanks to Barcelona’s complex regulations, which limit supply and complicate access to the market.

Vicenç Hernández Reche, CEO of Tecnotramit, points out that many current regulations seem to be more ideological than effective in addressing the sector’s problems. “Profitability does not solely depend on the relationship between income and investment; it is also crucial to consider the associated risk,” says Hernández Reche. This dilemma between risk and profitability becomes a determining factor impacting the supply of available housing in the market.