Home sales in Spain down by 26 percent

4th September 2008, Comments 0 comments

The sales of homes in Spain dropped 25.9 percent in the second quarter of 2008.

4 September 2008

MADRID -- Sales of homes in Spain dropped 25.9 percent in the second quarter of 2008 as the country's housing market collapsed, according to figures released Wednesday by Spain's College of Property Registrars.

Sales of existing homes dropped 37.7 percent, while new homes fell 9.6 percent.

A growing number of real estate firms have either declared themselves bankrupt or have gone into administration after the domestic property market crashed following a 10-year boom.

Martinsa-Fadesa, which went into receivership in June with financial debt of EUR 5.2 billion, said Wednesday it would not publish its first-half earnings until 26 September.

It said it was not able to meet the 1 September deadline for doing so because of changes to its management systems, its failure to find an external auditor and problems in correctly valuing its assets.

Meanwhile, fellow property company Colonial said it expects to complete an accord with its creditors in the "coming weeks" on the restructuring of its debts of some EUR 9 billion.

It said it is also considering selling non-strategic assets and launching a convertible bond issue.

Earlier this week, Colonial reported a loss of  - EUR 2.381 billion in the first half of this year after writing down the value of its assets by EUR 2.581 billion.

[El Pais / Adrian Soto / Expatica]

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