Banks tighten developer lending, avoid a housing price collapse.
Since the last quarter of last year, they have begun to tighten the requirements for granting developer loans. Specifically, as confirmed to this newspaper by several of the country's largest developers and financial institutions, for first homes, pre-sales of 40% on average are being demanded, while for second homes the average has now risen to over 50%.
They are limited to large companies and solid projects, so the smaller the developer and the more remote the project, the tougher the conditions that the banks are demanding.
Since the last quarter of last year, they have begun to support the requirements in the granting of the developer loan. Specifically, as confirmed to this media by several of the largest promoters and financial entities in the country, for a first residence they are requiring pre-sales of 40% on average, while in second residence the average bar has already been placed above 50% .
They are limited to large companies and solid projects so that the smaller the developer and the more remote the project, the more the conditions demanded by the banks become tougher.
