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spanish real estate article from FT

letthegoodtimesrollletthegoodtimesroll
edited April 2007 in General Charlton
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Spanish real estate
Published: April 24 2007 20:54 | Last updated: April 24 2007 20:54

How timely it is to be reminded that dangerously inflated markets do not last forever. In the past few days, Spanish real estate has exhibited all the signs of a bursting bubble. While unfortunate for the owners of Spanish homes and property stocks, a popping sound should focus the minds of all investors in risky assets.

The speed of such corrections is always humbling. A week ago, developer Astroc Mediterraneo was the darling of the sector, trading at €45 per share. On Tuesday, following financing concerns, its share price is just €16. Amazingly, this still equates to a forward price/earnings multiple of 20 times. The sell-off in real estate has now spread into the local construction and banking sectors too. It will be interesting to watch whether investor panic travels to other pockets of property irrationality across Europe and beyond.

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    WSSWSS
    so what you're saying is that you should buy a ticket for the blackburn game and go up there and support charlton?
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    PassItToLeaburnPassItToLeaburn
    Or don't bother exchanging your peely Charlton shirt as Llanera might be coming off it next season anyway!
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    LenGloverLenGlover
    Does anybody know the area of Spain where Llanera are building?

    How near is it to the coast?
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