The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Spanish real estate equities: Soft but bumpy landing

Michiel Rang, senior managing director, ING Real Estate Finance.

Get a grip

Between April 20 and April 27, the Spanish Stock Exchange Index, IBEX-35, slid by 4.4%. This is the second-biggest loss in a week in the year to date for this index, which comprises stocks from the 35 most liquid companies traded on the continuous market.

Many commentators believe that the recent development signals the end of the real estate boom in Spain. For the past few months, analysts worldwide had been drawing attention to the listed Spanish property and real estate companies, claiming that there was a stock overvaluation. Although four out of 19 had skyrocketed, attaining growth rates above 100% in a single year, another 10 rose between 30% and 100%.

Spanish real estate sector share prices

Source: Bolsa de Madrid/Euromoney


After these figures, everybody seemed to expect a downturn, and the only question repeated in the market concerned when it would happen. Although it remains to be seen what the correlation between the financial and real sector is, there are some factors that might prevent a financial correction of property companies from expanding its effects to the residential sector.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree