29 May 2015 – El Economista
The sector is hoping that the fear will pass and the uncertainty will come to an end soon.
Just two weeks ago, the real estate sector claimed that the emergence of new political parties in Spain would not affect the volume of investment. However, that perception has changed following the recent elections.
The current political uncertainty is palpable and the players in the sector fear that investment in property is stalling. The main Spanish Socimis are already detecting reluctance from investors, based on the views they shared at a forum organised by Deloitte. Moreover, the CEO of Merlín, Ismael Clemente, warned yesterday that companies issuing bonds will do so in poorer conditions from now on.
According to sources consulted by this newspaper, the sector fears that funds “will suspend the plans they had for Spain until after the general election”, or that they will have a complete change of heart and choose to focus on other markets.
Nevertheless, there is another side to the coin and that is that the funds may play their cards so as to push down prices in the face of so much “uncertainty”. That is the word that has been repeated time and again in the sector over the last few days, but everyone is hoping that the “fear will soon pass”.
Original story: El Economista (by Alba Brualla)
Translation: Carmel Drake