Panic in the Spanish property construction sector could spell bad news for UK investors in the country, according to Lombard Street Research.
Developers saw up to 65% of their share price wiped out in frantic trading earlier this week, meaning some could see the value of their properties plunge. However, other analysts say the crash could actually be a good thing for the housing market, as buyers come to realise that prices can not keep rising. The loss of confidence came amid growing signs the market was already suffering from overbuilding and rising interest rates on European mortgages. Diana Choyleva, chief economist at Lombard Street Research, says: “This is not good news for UK investors in Spain. We have had over-investm...
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