Plots of land previously assessed as suelo urbanizable, a category for non-urban plots that can be reclassified as urban and improved, will not be reassessed and therefore keep the same value on the balance sheets of banks and real estate companies despite a deferral of changes that are planned for land assessment laws.
The extension has been stretched by six months and will end five years after the Ley del Suelo went into full effect. This law, except for these exceptions, assesses the value of urban and rural land, but plots expected to become urban are assessed as such.
So for now, real estate firms and banking groups have not been able to declare bankruptcy, because when the value of the assets drop on the balance sheets, lenders and real estate firms would no longer be solvent.
Ley del suelo
The underlying problem that banks and real estate firms are facing is that without this extension, firms that purchased or received deeds to an urbanizable rural plot of land (as classified by the plan urbanístico) are required by the Ley del Suelo to classify the land as rural on their balance sheets. The rural assessment limited to the estimated value of agricultural products that can be produced on this land, because these plots are not intended for housing development.