Spanish property market ‘will not recover before 2011′
The Spanish housing market will not recover until at least 2011, according to one industry leader, which could prompt to investors to look at other sectors, such as property in Brazil.
Felix Abanades, chairman of residential developer Afirma, said the slump in the Spanish real estate market will wipe out half of companies in the sector.
Speaking at the industry conference SIMA, he forecasted that property companies in the country will continue to lose money over the next two years, which could prompt investors to consider a thriving market such as Brazil real estate.
"In the short term, in 2009 and 2010, at least 50 per cent of the companies in the sector will be lost and for the rest of us, there will be a shutdown in activity," he stated.
Meanwhile, an expert contributor writing for the Gerson Lehman Group website recently alluded to a Wall Street Journal article, saying that the Brazilian property market is becoming more appealing to construction equipment manufacturers following the collapse of the Spanish housing sector.
