Spanish property stocks settle after slide
26 April 2007 , MADRID – Spanish property stocks recovered some ground on Thursday after a dramatic fall on the stock exchange.
26 April 2007
MADRID – Spanish property stocks recovered some ground on Thursday after a dramatic fall on the stock exchange.
Real estate companies showed a modest rise of 0.68 percent after falling 7.49 percent on Tuesday.
The drop, prompted by a fall of 60 percent in the value of one of the major new holiday home companies, Astroc, over the past week, brought predictions the Spanish housing boom was over.
Fears spread among expat buyers and Britons, Germans and other foreign nationals that their homes may have dropped in value considerably overnight.
House price inflation slowed to 7.1 percent in the first quarter this year – the lowest level since the present boom began in 1998.
But growth for the past three months was three times the current inflation rate.
Real estate companies tried to cool fears of an end to the boom.
Inmocaral chief executive officer, Mariano Miguel, said: “The housing market isn’t in a crisis. We are just seeing a normalization of prices which is necessary to ensure people can continue to afford to buy houses.”
Economy minister Pedro Solbes also tried to calm nerves.
He said: “Are we in a worrying situation? My theory is no because household income is consolidating and there are good job prospects.”
[Copyright EFE with Expatica]
Subject: Spanish news