January 7, 2008

Property meltdown in Spain

There are fears of an imminent property meltdown in Spain, this comes as one of the largest property businesses in the country Colonial had their shares suspended, and this is simply because the company has lost around forty per cent of is value, which has lead to half the board resigning.

There may be some other motive behind the collapse of the business; they have been disposing of huge chunks of shares, which will naturally drop the price.

But it is the knock on effect of this huge business can have on the market that may cause the damage to the entire sector. This is coupled with the industry lobbying group G-14 who have been saying that there will be further downturn in house prices and up to 400,000 construction jobs could be at risk in 2008 alone.

Source [Independent]