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Red Flags Over Madrid Sign of Spanish Crisis Easing: Mortgages

In the upmarket Madrid neighborhood of Arroyo del Fresno, red flags bearing the insignia of Banco Santander SA flutter atop a building site nestled between a medical center and a metro station. Instead of caution, they may signal that Spain’s six-year property crisis is receding.

Workmen last week were busy assembling a sales office at the plot to market “Gardens of the Countess,” a planned 84-unit complex with mountain views where a two-bedroom apartment will sell for as much as 393,000 euros ($517,000). It’s one of about 120 projects Spain’s largest bank has begun the process of developing, mostly in the country’s biggest cities.