Spain 'has the right ingredients to support its property market'
A crash in the Spanish property market is unlikely because the country has the necessary mix of "ingredients" to support it sufficiently into the future, according to a real estate services company.
The comment from Realia comes as the firm is about to list on the stock market, in spite of a recent share price collapse of many already-listed Spanish property companies - an event that sparked fears of a crash in Spain's residential market.
And while the residential sector subsequently showed signs of slowing down, a fully-blown crash is unlikely because of the strength of the country's economic fundamentals, revealed Realia chairman Ignacio Bayon.
He told Dow Jones Newswires: "Spain still has the right ingredients to support the residential property market: a strong economy, growing disposable income and population growth."
BPI analyst Bruno Da Silva added that the large number of construction companies and banks tied into the Spanish property market ought to preclude the possibility of a "serious nosedive" occurring.
Recently, Spanish property expert Mark Stucklin claimed that fears about a Spanish property crash were generated through "misrepresentation" and hype, according to the Nubricks.com property blog.
< Back to latest news