After five years out of the stock market, Metrovacesa returned on February 6 via a public share offering earmarked just for qualified investors. The property company’s shares are currently trading at 14.11 euros each, with a big discount to NAV.
Mario Esteban and Miguel Otero-Iglesias | As in many other European countries, Chinese investments in Spain have increased spectacularly over that past years. Nonetheless, there has not been a public or political debate around the topic, and even less a thorough reflection by the government, the media and the academic community at large about the implications of these investments.
The new upward cycle in the property sector seems to be consolidating. Positive proof of that is the fact that housing prices have been increasing for the last two years.
We have read that in Tarragona, a province in Catalonia, a flat has been sold for 40000 bitcoins, because that’s what the owner wanted.
Since Portugal emerged from the crisis in 2014, its real estate sector has undergone a remarkable recovery. Caixabank Research points that the evolution of house prices, after a fall of 16.3% in nominal terms between 2007-13, have risen by an average of 5.3% per year and are now back at pre-crisis levels.
Ratings agency Fitch has warned that a property bubble is evident in the centres of Spain’s large cities. But it makes it clear that it does not anticipate any generalised bubble in housing prices in the country in the short-term. This is due to the high level of stock which still has to be absorbed and the restrictions on buying a home.
In Spain banks stocks, particularly Santander, play an unusually important role in driving the index Ibex35.To understand the prospects for the Spanish banks (and ipso facto, the overall index), it is crucial to have a handle on the health of the domestic real estate market,” confirms Goldman Sacha experts.
Housing prices have grown 16% since end-2014, according to the Bank of Spain. This is after a decline of 37% in nominal terms (45% in real terms) since their peak at end-2007.
Fran Wang via Caixin | China’s drive to boost the housing rental market is spurring the revival of plans to let companies offer real estate investment trusts (REITs) to the public.
Testa Residencial, the socimi in which Santander, BBVA and Merlin have stakes, will today approve its merger with Acciona’s property rentals business. The operation will create a new property ‘giant’, unheard of up to now in Spain, given that it will be the first company dedicated to the home letting business.