Real estate companies doubled their value at the stock market
Increases between 0,4% and 3% were registered at the main stock markets around the world. This increase is more spectacular if we take in consideration the fact that the Middle East tensions have slowed down the increase from the beginning of the year.
The Spanish index, Ibex has had a slow month with a 0,4% advance. But the good news is that the real estate companies have registered a 28% increase in the market. 10 Spanish companies registered increases of more than 25% and 4 of them were real estate companies: Quabit, Urbas, Realia and Colonial. Even so, experts said that the market has to be cautious with these increased because a great partof these increases were due to speculative money.
The markets deduces that the recapitalization of the financial institutions will facilitate the refinancing of real estate companies’ debt. These measures will advertise real estate companies in the stock market and this will help restore the image of Spanish cajas, which are their main investors.
In general, real estate values represent a tiny trading volume every day and also have little free float (percentage of free-listed capital on the market), causing high volatility in their prices. The investors don’t really trust them, except Realia, Which emerged from losses in 2010 with a profit of 1.1 million and is preferred for its lower exposure to the residential sector.