The credit to real estate activities has fallen by 9% in the last year, almost 11,000 million euros
According to the report " Evolution of credit to productive activities in Spain by activity sectors ", published by AIS Group (specialist consultant in credit risk management), the portfolio of loans to companies engaged in real estate activities fell more than 10,800 million euros between 2016 and 2017.
This drop in credit to this segment represents a reduction of 9% in the portfolio, having gone from 120,805 million euros in December 2016 to slightly less than 110,000 million at the end of 2017. This is practically equivalent to one fifth of the total credit to companies, which in the last financial year was approximately 590,000 million euros.
The credit to real estate companies links and 8 years of continuous decline. So since 2009, the year in which this portfolio was the largest (323,000 million euros), the total credit drop is 66%.
The analysis of the variation rate reveals that the situation, in spite of continuing to be of negative growth, the rate of decline is slowing down compared to the worst years. Thus the negative rates of 25% and 20% that occurred in 2012 and 2013, have given way to some somewhat more moderate in the following years (between 15% and 10%), to be at 9% at the end of 2017, the first year in which the rate is below the 2 figures.
Regarding the delinquency rate, the loan portfolio to real estate companies registered in December 2017 an 18, 1% delinquency.
This is almost 7.5 percentage points of what it marked in 2016 (25.5%). In fact, this indicator has been in a downward trend for 4 years, since it reached its peak in December 2013: 38%. However, despite these good indications, it should be noted that the delinquency rate of the portfolio of loans to companies in the real estate sector was at the end of 2017 the second highest in all sectors of activity, second only to construction ( 24.1%).