Participation in inversores news. Squatters in Spain, big business

In its first article published in Inversores News magazine, Mariano Capellino, co-founder and CEO of INMSA again pointed out Spain as a significant opportunity for investors, and highlighted one of the most profitable business: acquire portfolios of homes with squatters.

The term squatter is always scary. And with a good reason. Many movies and series have reflected images with certain burden of tension and emotion, which were necessary for the story to be catchy for the audience. But behind such emotional burden lies one of the most important business today. As we already know, Spain has become one of the most attractive markets for real estate investors worldwide. Returns on investment can exceed 10% annually in this market as it has attracted the largest real estate funds at global level.

But apart from that, there are always new opportunities to maximize the benefits of investments. In order to do profitable business in real estate, it is necessary to identify the market, type and class of asset experiencing the recovery phase, and detect the most convenient niches where it is possible to acquire assets at prices quite below the market values.

And this is happening today with the portfolios of homes where squatters live. Certainly, thinking about doing business in this type of homes in Argentine would seem a utopia. And maybe, it is true. Today, in Spain the process to evict squatters is carried out within a period of 4 to 12 months, always efficiently. This period is quite longer than in the USA but definitively significantly shorter than in our country and there, it is performed effectively.

But where is the business opportunity?

Nobody wants to have properties in that situation, let alone banks. For that reason, it stands to reason that they want to sell them in portfolios and fast. Today there are many properties in this category, most of them belong to financial entities.

If the value of a property in 2007 was 160,000 euros, today, it is possible to get it at 24,000. Yes, you read that right! Today it is 15% its original value. Currently, homes with the same characteristics but without squatters, are at their lowest value after a 7 year-drop. Nowadays, you can get them at the market at approximately 60,000 to 80,000 Euros. This means that, if you have the guts, you can double the investment value in the short term.

For more information on this business, contact us through our email: or call +54 11 52767100



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