17/06/2014 – El Confidencial
He has been travelling all over the world for many years. The experience gained at his office as the head of realtor Knight Frank allowed him to explore how different countries go through the financial recessions. During his recent visit in Spain, Alistair Elliott said “no real estate crash lasts forever”.
Basing on the 30-year knowledge acquired at the property market, the president assured that each sector sees non-correlated, bidirectional cash flows and “a market never shows equality in terms of an investment receiving and transmitting”.
Elliott identifies legal risk and transparence as the main factors determining pricing. That is why such countries as Russia or China remain out of reach of the international equity, unlike Europe enjoying great popularity when it comes to investment. He also mentions the interest of foreign investors in the Spanish property, however he warns “there will be no recovery until Spaniards themselves convert into buyers again”.
According to the chairman of Knight Frank, this will be the true sign of recovery. In his opinion, sometimes there is no time for stopping and analyzing the huge economic engines transformation, meanwhile the distribution and retail trading will offer leverage for those who can look beyond and interpret the consequences emerging from the real estate world evolution.
Moreover, Elliot blames Sareb for detaining the property sector in Spain. He claims that the success of the bad bank becoming useful as a realtor lays in preparation of asset lots and fixing prices. Such bases will enable investors to estimate risk and take advantage of the opportunities our country hands over. But the Spanish investor must take up the reins.
Original article: El Confidencial (by Carlos Hernanz)
Translation: AURA REE