Tag: bubble

Moody’s: House Prices Will Rise By 4.7% p.a. Between 2017 & 2019

30 May 2017 – El País

The risk rating agency Moody’s expects house prices to rise in Spain by 4.7% per annum between 2017 and 2019, in line with their evolution in 2016. This will have a positive effect on the balance sheets of the banks and on the behaviour of mortgage securitisations.

Those are the conclusions of a report on the real estate sector in Spain, prepared by analyst Antonio Tena, which nuances these promising forecasts by reminding readers that the number of units sold is just as important as the price at which those units are sold for.

Even if GDP grows at a lower rate than currently predicted, the US agency believes that the rate at which it will likely close the year (2.3%) will undoubtedly sustain this recovery in house prices.

But it is important to “decouple” house prices from the number of operations, given that although the volume of properties is decreasing, it is true that some of the new homes (…) date back to 2006 and 2007 and still have not been sold”. However, those now account for just 10% of operations, well below the pre-crisis levels, when new and second-hand homes accounted for half the market each, reported Efe.

The agency also commented that there is no risk of “overheating” in the mortgage market, said Tena, or of a mortgage bubble happening, given that nowadays just one euro is being loaned for every four euros that were being loaned back in 2007.

Last week, the President of the European Central Bank (ECB), Mario Draghi, spoke along the same lines. He ruled out the danger of a new real estate or credit bubble in the euro zone.

The banks are now a lot more restrictive when it comes to granting a mortgage, said the Moody’s analyst, Antonio Tena. He added that it is important to distinguish between the granting of mortgages and the sale of homes; in 2007, more mortgages were granted than homes were sold, whereas, in 2016, the volume of house sales was much higher than the volume of mortgages signed.

The sale of homes is growing in a sustained way, at around 14% p.a., but that still represents half of the volumes sold in 2007; the data from Moody’s shows that house sales are not decreasing in any city where there are more than 200,000 inhabitants; and that Madrid and Barcelona – and their peripheral regions – as well as the Mediterranean arc, are accounting for most operations.

Borrowers are increasingly older

Another positive indicator, according to Tena, is that the average age of mortgage applicants has increased from 34 years in 2007 to 38 years in 2017. Borrowers now have a greater capacity for saving and financing. (…).

Along with the report about the mortgage market, Moody’s has published another study about covered bonds, which are known here as “mortgaged bonds”. The product plays an important role in Spain, given that for every euro of that type issued, there are €2.50 of mortgage loans, whereas, that ratio barely amounts to 1.10 in other countries. (…).

Original story: El País

Translation: Carmel Drake

Experts Rule Out Risk Of RE Bubble In The Short Term

10 May 2017 – El Confidencial

The fact that the Spanish real estate market is enjoying happier times is more than clear. And all of the players in the sector are aware of the fact: property developers, consultants, construction companies…Nevertheless, the “overheating” that some say is threatening certain segments of the market, is falling well short of a full-blown real estate bubble, for the time being at least. At least that is according to the speakers who participated in the “Real Estate Investment Opportunities” day organised by El Confidencial and Colonial.

Real Estate Market Forum

Indeed, Juan José Brugera, President of Colonial – which is currently evaluating its transformation into a Socimi – stated that the market is “a long way from a bubble. What we are seeing is the launch of projects”. In this sense, he pointed to the German market by way of example. “It is very stable. (…) What you have to do is take a risk and invest. With this stability in terms of value, your investment will be rewarded”.

In his opinion, “a bubble is something else. It is an excessive value, but, one of the characteristics of the European property sector is that financing is very tight in terms of size and type. I don’t see a bubble, what I see is a more professional management of the assets, where the ability to generate value is what will determine prices, provided the markets are not affected by global circumstances”.

The CEO of the consultancy firm JLL in Spain, Enrique Losantos, also rules out the risk of a bubble. “Given current prices, you could be forgiven for thinking that the market is overheating, but the fact is, there is still a long way to go, especially for those investors who know how to extract value from the portfolios of assets that are coming onto the market and which should be invested in and managed to adapt them to the demands of the current market. These players will be able to obtain returns, even in the double digits (…)”.

Who will control the large rental stock?

Meanwhile, Ignacio de la Torre, Chief Economist at Arcano, said that “there is not a bubble at the moment, but if we continue at this rate, there will be one”, especially in the residential market. He highlighted the significant interest that certain assets have sparked in Spain, such as, for example, rental homes, especially amongst institutional investors. “When everything was clogged up, it seemed like Spain was going to go bankrupt, but then investors with large risk appetites entered the market to inject liquidity and the economy started to work again. Now, those hedge funds are starting to recycle the assets they bought and as the market for rental homes increases, so institutional investors are entering the segment, which is what is happening in other countries too. In the future, insurance companies and pension funds are expected to become the owners of the large stock of rental housing in Spain. (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Spain Is A Long Way Away From A New RE Bubble

21 April 2017 – Expansión

Spain’s large property developers consider that the (Government’s) policies in terms of housing are obsolete and so, they are requesting changes to the existing legislation to reflect the new habits and demands of Spanish society.

A more professionalised sector, with a greater industrial component, which is more disciplined in terms of debt, selective when buying land and prepared to adapt to the economic cycles. That is how Spain’s real estate developers see the future of the residential market in the country.

“I find it hard to believe that the market is not going to undergo a major transformation. The banks are not going to finance land and the radical fragmentation that we have seen until now is not going to continue”, said Juan Velayos, CEO of Neinor Homes, on Wednesday at the XXIV Meeting of the Financial Sector, organised by Deloitte, Sociedad de Tasación and ABC.

The CEO of Aedas Homes, David Martínez, said that between 130,000 and 150,000 new homes are going to be needed per annum over the next few years, so there is still a long way to go. For that Director, Spain has entered a new bonanza cycle following the crisis, which will probably last longer than the previous one.

The CEO of Sociedad de Tasación (ST), Juan Fernández-Aceytuno rejected the idea that there is currently a real estate bubble in Spain. “There is clearly stability in terms of prices, but it is still too soon to talk about a complete recovery in the market”. (…).

Thus, the President and CEO of Vía Célere, Juan Antonio Gómez-Pintado, said that the challenge for the sector in the future is to achieve greater industrialisation. “The situations that are being imposed on us by house and land prices are turning us into a speculative model. The sector was very badly affected during the crisis and there are only a handful of companies with their production capacity intact at the moment”.

For Gómez-Pintado, the sector is still very fragmented: “The large players will not account for more than 5% of the total market”.

Meanwhile, the CEO of Metrovacesa Suelo y Promoción, Jorge Pérez de Leza, highlighted the importance of recovering the reputation of brands.

In terms of his firm’s strategy for the future, Pérez de Leza explained that Metrovacesa Suelo y Promociones wants to become a “premium” channel for generating value from the land currently held by its shareholder banks (Santander, BBVA and Popular). “There has been a lot of speculation around whether we were going to end up as a dump. That is not the case. The strategy that we have chosen to adopt is for Metrovacesa to choose the land that will allow it to be a competitive property developer. The portfolio of land is very good and will be the envy of many of our competitors”.

Shortage of land

In terms of the lack of buildable land, Velayos acknowledged that, although Neinor currently has sufficient buildable land to carry out its strategic plan, which involves delivering between 3,500 and 4,000 homes per annum, the lack of supply may become a problem in the future. (…).

Moreover, the property developers are demanding a change in legislation in terms of housing in Spain so that it reflects the new needs of society. “I can’t think of any other sector that is worse in terms of regulatory matters than urban planning. It is absurd”, said Velayos. (…).

Meanwhile, the Managing Partner at Azora, Concha Osácar, pointed out that Spanish society is changing. “The rental market has been slow to reach Spain, due to a lack of investment and products, but it is now here to stay. (…). The stock of rental homes needs to be increased substantially”. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

CBRE: Madrid Is EMEA’s 3rd Most Attractive City For RE Investors

30 March 2017 – Mis Oficinas

Madrid is the third most attractive city in Europe, the Middle East and Africa (the EMEA region) for real estate investment. At least that is according to the “Global Investors Intentions 2017” report compiled by CBRE, the leading real estate consultancy and services company in the world, based on a survey of 2,000 international investors.

According to the study, London leads the ranking of the most attractive cities for real estate investment, after it was chosen by 17% of investors. It was followed by Berlin (15.8%) and Madrid (8.4%). Amsterdam and Paris complete the top five (…). For the first time in 2017, cities such as Hamburg and Milan did not appear in the top ten, due to growing concerns from investors about (high) asset prices in some of Europe’s most established markets, following years of increases.

“Madrid is a very attractive city for international investors for a variety of reasons. Prices here are still below those of other markets, and in recent years, some very interesting renovation and development projects have been launched. Similarly, rental income is forecast to rise. These factors caused investment in the Spanish capital to exceed €4,000 million in 2016”, said Paloma Relinque, National Director of Capital Markets at CBRE Spain.

Meanwhile, Spain is ranked sixth in the list of the most attractive countries to invest in, whereby maintaining its top-10 position, against competition from all of the countries in Europe, the Middle East and Africa. In this sense, Germany is the market of choice for 22% of those surveyed as an investment market in 2017. It is followed by the United Kingdom (20%), Eastern Europe (10%), Scandinavia (10%) and The Netherlands (9%).

In terms of the sectors that these investors plan to invest in, the office market was mentioned the most, by 34.7% of investors. It was followed by the industrial-logistics sector, chosen by 25.9% of respondents. Nevertheless, one of the most interesting conclusions was the growing appetite for alternative assets, in which 7 out of every 10 real estate investors are now investing. Specifically, real estate debt is the segment that is sparking the most interest amongst investors (31%), followed by leisure and entertainment (27%) – which is the segment that grew by the most in comparison to the previous year – and student halls of residence (25%).

On the other hand, the report described investors’ main concerns for 2017. The most frequently mentioned concern was the risk that interest rates rise more quickly than expected, a fear cited by a quarter of the investors surveyed. It is noteworthy that, despite the numerous elections on the horizon in Europe and their possible implications for the sector, investors place greater importance on the economic climate than on geopolitical matters. The third concern is the fact that prices are forecast to increase and the risk of a possible bubble. (…).

Original story: Mis Oficinas

Translation: Carmel Drake

BBVA: Málaga Has The Most Active RE Market In Spain

27 March 2017 – Málaga Hoy

Málaga is the Spanish province with the most real estate tension, given that it has the highest index of sales as a proportion of existing stock, a parameter that indicates the dynamism of the area. Moreover, that pressure is leading to an increase in house prices, to the extent that Málaga has seen the third highest price rises of all of Spain’s provinces over the last three years.

Those are the findings from the Real Estate Market in Spain report, prepared by BBVA, which was presented in Málaga on Thursday by the analysts Félix Lores and David Cortés. The study reveals that between 2014 and 2016, 28.4 homes were sold in Málaga for every 1,000 property stock, thanks to an increase in demand during the period of almost 15%. The only other province to come close was Alicante, with 25 purchases for every 1,000 homes; and Málaga was thirteen points above the Spanish average. That was, in part, due to the fact that Málaga and Alicante are the two Spanish provinces where most homes are sold to non-resident foreigners.

When demand exceeds supply, prices rise. On average, Málaga was the third-ranked Spanish province in terms of the highest house price rises between 2014 and 2016, at 3.1%, triple the national average. During that period, property prices rose by more only in the Balearic Islands (3.5%) and Barcelona (3.3%). In more than half of Spain’s provinces, not only has a reactivation of the market not been felt, but house prices are continuing to fall. In Sevilla, for example, house prices decreased by 1.6% during the same period.

“Sales have been recovering since 2013, with Madrid, Barcelona and the Mediterranean region, together with the islands, leading the way”, said Lores. According to these experts, this boost is consolidated because it is being driven by an improvement in employment and household income, which means that it is not subject to speculative movements (with feet stuck in the mud) like in the case of property price bubbles. In fact, the analysts from BBVA deny that we are seeing the start of a real estate bubble.

Looking to the future, Málaga is also one of the leading provinces in Spain, given that it is one of those that has most contributed to the increase in visas in the country, together with Madrid, Barcelona and Alicante. Between 2014 and 2016, the number of housing visas granted grew by 55% in Málaga, although it is worth remembering that the starting point was very low and well below than the volumes signed at the height of the real estate boom. More business is forecast because, amongst other factors, the sector has been so quiet in recent years, also demand exists and supply is limited, however there are several uncertainties, such as the effect of Brexit on British residential tourists, the macroeconomic impacts that Trump’s protectionist policies in the USA may have and the results of upcoming elections in several European countries.

Original story: Málaga Hoy (by Ángel Recio)

Translation: Carmel Drake

Idealista: Rental Prices Rose By 15.9% In 2016

17 January 2017 – Expansión

The price of rental housing underwent a recovery in Spain in 2016, ending the year 15.9% higher than it started it, taking the price per m2 to €8.2/m2/month. The rate of growth accelerated during the last month of the year, as prices increased by 8.2%.

Fernando Encinar, Head of Research at Idealista, said that “this is not a bubble but rather a significant increase in demand from Spaniards to rent in certain cities.

The Director of Idealista said that to encourage the growth of the rental market “policies to revitalise the sector must continue and new measures must be adopted to help to increase the housing stock”.

By autonomous region

All of the autonomous regions saw higher prices than a year ago. The largest increase was observed in Cataluña, where owners are now demanding 26.8% more to lease their homes than a year ago. It was followed by increases in Madrid (18%) and the Balearic Islands (13.8%).

Cataluña (€13.30/m2/month) also became the most expensive autonomous region. It was followed by Madrid (€12.90/m2/month) and Euskadi (€10.40/m2/month). At the opposite end of the spectrum, we find Extremadura (€4.1/m2/month), Castilla La Mancha (€4.5/m2/month) and Murcia (€5/m2/month), the cheapest autonomous regions.

By provincial capital

Valencia is the capital where rental prices grew by the most in 2016, with an increase of 20.3%, to €7.5/m2/month.

The increase recorded in San Sebastián was also noteworthy, with prices up by 17%, followed by Barcelona (16.5%) and Madrid (15.6%), which have returned to their historical peaks.

Barcelona consolidated its position as the most expensive Spanish capital (€17.9/m2/month), followed by Madrid (€14.4/m2/month) and San Sebastián (€13.6/m2/month). At the opposite end of the table, we have Lugo (€4.1/m2/month), and Ourense and Ávila (€4.3/m2/month in both cases), the cheapest provincial capitals.

Original story: Expansión (by Rubén San Isidoro)

Translation: Carmel Drake

What’s In Store For The Housing Market In 2017?

28 December 2016 – Cinco Días

“The real estate market can look forward to a new smooth and long expansionary cycle”. That is the consensus of the majority of analysts who have spent the past few days preparing their end of year report and forecasts for next year. Although the forecast figures are unlikely to coincide exactly, the fact is that the trend is unanimous. Provided there are no major macroeconomic changes, in other words, provided employment continues to grow and interest rates continue to remain a minimum levels, all of the experts consulted, be they property developers, construction companies, intermediaries such as the API, notaries, registrars, appraisal companies or bankers, agree that: 2017 will be better than 2016.

This does not mean that there are no clouds on the horizon. For the consultancy firm Knight Frank, the main risk is the political context at home and, to a lesser extent, overseas. “During the months when there was a caretaker Government, many projects were frozen; now the main uncertainty is whether the new Govenrment will manage to approve the budgets”, said Ernesto Tarazona, Managing Partner of Residential and Land at Knight Frank.

In this way, provided there aren’t any new political upheavals, 2017 will be the year in which more homes are sold and constructed and at higher prices. In terms of production, experts calculate that if this year around 70,000 new homes are going to be finished, then next year that figure should increase to around 100,000. Meanwhile, in terms of transaction volumes, next year could be the first year since 2008 when we see more than half a million homes being sold once again, according to Tinsa.

On the other hand, the forecasts vary the most when it comes to house prices, with predicted increases ranging from 2% to 5%. The VI Observatory of the sector, compiled by the Spanish Association of Value Analysis (AEV), together with the Head of the Applied Economics Department at the University of Alicante, Paloma Taltavull, and a group of 21 experts states that the evolution of house prices will be contained due to two essential factors: the stock that still needs to be sold or leased, of which they calculate that 25% is owned by the banks; and the weakness in terms of demand that still persists across the majority of the country. In the opinion of these experts, prices will end this year with nominal increases of around 3.8%, and will continue to rise by around 3% in 2017. Other sources, such as Bankinter, raise that percentage to 5%, due to the booms currently happening in the real estate markets in Madrid and Barcelona, where house prices are rising at double-digit rates given the scarcity of supply of new homes.

What all of the experts seem to have rejected is that the market may generate a new bubble over the medium term, given that: house sales are growing in a sustainable way, in line with new mortgages; and they are doing so in regions with the greatest economic activity and highest levels of job creation. Moreover, the recovery in terms of the promotion of new homes will act as a buffer to prevent one-off price spikes amounting to anything more. (…).

Original story: Cinco Días (by Raquel Díaz Guijarro)

Translation: Carmel Drake

The Real Estate Recovery Takes Hold In Portugal

15 December 2016 – El Mundo

After several years in crisis, the Portuguese real estate market is booming once again thanks to public auctions of properties and the arrival of overseas buyers, attracted by the tax exemptions and the quality of life.

In Lisbon, Luis Morais, a 43-year old IT teacher, has just acquired an 80 m2 apartment in Sintra, a city close to the capital, for €49,000 in a public auction. The bidding started at €33,000. “It is a bargain” said the IT teacher. “We are not going to live there, we just want to rent out the apartment to supplement our income”, explained Teresa, his partner, aged 36, who teaches mathematics.

The property was confiscated from a family with lots of debt and was owned by the public bank Caixa Geral de Depositos, which decided to auction it off. Like Luis and Teresa, many Portugese people are now choosing to invest in property rather than leave their money in the banks, which are still fragile following the crisis.

Overseas investors are also buying properties in public auctions, such as the case of a three-storey office building in the entre of Lisbon, which was put on the market for €5.1 million.

From recession to recovery

After several years of crisis, the real estate market in Portugal began to improve in 2013 and the recovery accelerated in 2015, thanks to low interest rates, which drove up sales by 27%. Between 2008 and 2012, house prices fell by 30% in Portugal, but they are now soaring again thanks to overseas buyers, attracted by the quality of life in Portugal and the tax exemptions on offer.

The phenomenon is being felt in Lisbon above all. “In two years, prices have risen by 20% and they are still increasing, there is still room for growth” said Pascal Gonçalves, President of Libertas, a property developer.

Recently, a 160 m2 apartment in the popular neighbourhood of Alfama was sold for €420,000, which is twice as much as it was worth ten years ago. And in the heart of the capital, in the neighbourhood of Chiado, a 100 m2 2-bedroom home was recently sold for €900,000, a price that would have seemed very high just a few years ago.

No risk of a bubble

In Oporto, the largest city in the north of the country, the real estate sector is also performing well. “I have doubled my turnover in a year, and I now earn four times as much as when I worked as a biologist”, explained Isabel Leitao, aged 33, who has been working as an estate agent for six years.

During the first nine months of 2016, the activity of the network of real estate agents Century 21 has soared by 36%. Its President for the Iberian Peninsula, Ricardo Sousa, expects “prices to stabilise in Lisbon because they are out of step with the incomes of Portuguese people”.

Nevertheless, according to the Minister for the Economy, Manuel Caldeira Cabral, there is no risk of a real estate bubble. “Prices have increased in Lisbon, but they are still much lower than in Paris or London”.

The average price of an apartment in Lisbon has increased to €3,607/m2, according to the ad website Imovirtual. (…).

Original story: El Mundo

Translation: Carmel Drake

APCE: We May Have To Demolish Some Of The Pre-Crisis New Home Stock

7 December 2016 – El Economista

Some of the stock of new homes that were left unsold when the real estate bubble burst and the crisis began in 2008 will have to be demolished, given that they cannot be absorbed into the market, as they do not fulfil the criteria that house buyers now look for.

That is according to the President of the Property Developers’ Association, APCE, Juan Antonio Gómez-Pintado, who, nevertheless, thinks that the market may still be able to take on some of that housing stock.

“Some of the stock may be absorbed, but in other cases, properties will have to be demolished because people prefer new developments, with environmental features, that are constructed with other materials and that are planned in a different way to how things were done ten years ago”, said the President of the Property Developers’ Association.

According to Gómez-Pintado, the stock is being sold in “certain geographic regions, but not in others” and he claims that the situation in terms of housing developments “was planned by bodies who should not be involved in planning, namely,  Town Halls”.

“Autonomous regions should be the ones to plan where and how they want to grow their cities and towns”, said the President of the APCE  in an interview with the College of Registrars.

According to data from Servihabitat, by the end of 2016, the stock of unsold homes left over from the beginning of the crisis will amount to around 388,000 homes, however that figure will decrease by 20% in 2017, to 315,000 units. (…).

Analysis performed by the company shows considerable variations in the distribution of these left over homes across the different regions in Spain, in such a way that there is hardly any stock left in Madrid, whereas in the Community of Valenca, there are 228 unsold new homes for every 10,000 inhabitants.

“A before and after” in the sector

During the interview, the President of the APCE highlighted the “before and after” experienced by the construction sector and house sales, which account for 6% of domestic GDP, as a result of the crisis. “The sector is trying to do this differently to how it did it in the past. The practices of the past were not widespread, but they no longer play any role at all”, he said.

Nevertheless, Gómez-Pintado considers that Spain’s real estate companies are still facing three challenges: to grow in size; to introduce changes in terms of construction; and to become more environmentally aware and energy efficient.

In terms of the evolution of the market, the main aim is for young people to be able to afford to buy their first home, given that, currently, the sector “nourishes” the so-called “demand to reposition” from those people who bought a home fifteen or twenty years ago and are now looking to upsize.

In terms of their relationship with the Public Administration, the Property Developers’ Association has just one request – a “stable legal and fiscal framework”. “We do not want PIVE plans, subsidies or aid, we just want legal certainty – clear, concise and transparent rules for everyone”, said the President of the APCE, who drew comparisons with the automobile sector to illustrate his point.

Original story: El Economista

Translation: Carmel Drake

The New RE Kings: Professional & Discreet

7 November 2016 – El País

The property sector still suffers from its soiled reputation as the cause of the bubble that led to the ruin of so many real estate companies, savings banks and families, ultimately bringing down the Spanish economy. But in a very discrete way, the sector is recovering its strength and real estate companies are becoming involved in major corporate operations once again, from purchases to mergers to stock exchange IPOs. The large corporations have also turned their business models on their heads. Whilst previously they undertook all kinds of activity (from property development to rental), we are now seeing specialist companies, many of whom are controlled by overseas investment funds.

The kings of property have also lost the glamour that those self-made businessman, such as Enrique Bañuelos (Astroc), Luis Portillo (Colonial) and Fernando Martín (Martinsa) enjoyed as their fortunes shined on the Forbes rich list (…). Nowadays, the new real estate companies do not have a visible face but rather are professional undertakings, and in many cases the managers are anonymous. The Socimis have taken up their place alongside the private equity funds and the large international investors such as the US businessman George Soros; Wang Jianlin, the richest man in China; and the Mexican magnate Carlos Slim.

Real estate stalwarts, such as Martinsa-Fadesa, Metrovacesa and Astroc, whose names used to feature on property developments, were left for dust, devoured by the black whole of gigantic debt. Their place has been occupied by the Socimis Merlin, Hispania, Lar and Axiare, whose names are barely known by the majority of the general public; by property developers such as Vía Célere and Neinor Homes, some of which have been created by overseas capital either investing directly in their capital or through partnerships for specific projects; and even by the former real estate arms of the banks, most of which are now owned by international funds.

One of the few exceptions to the empires from the last decade that has managed to survive is Colonial, which has cleaned up and transformed into a company that specialises in rental properties, and which is back with new investment plans. Last month, the company chaired by Juan José Brugera acquired 15.1% of the Socimi Axiare for €135 million. “Most of the companies that are left are a selection of the most professional enterprises”, said the Professor of Applied Economics at the Pompeu Fabra University, José García Montalvo. (…).

“The new managers of the real estate companies are more professional”, argues García Montalvo. In addition, the companies are more specialised and some even focus only on specific segments. One example is Lar España, a Socimi that specialises in shopping centre management (although it does also own a few office buildings), which has launched a €240 million investment plan for next year, supported by the major funds that comprise its shareholders, such as Franklin Templeton, Blackrock and Pimco.

Another example is Hispania, in which the US multimillionaires and fund managers George Soros and John Paulson hold stakes. It has also grown rapidly since it debuted on the stock market in 2014 and now manages assets amounting to almost €1,500 million. Its strategy is clear: to grow in size. Although it failed in its purchase of Realia, the company led by Concha Osácar and Fernando Gumuzio has absorbed the hotel Socimi Bay and all of the experts in the sector have tipped it to play an important role in upcoming operations. (…).

Original story: El País (by Ramón Muñoz and Lluís Pellicer)

Translation: Carmel Drake