Banco Santander forecasts “grey skies” ahead for the property development sector in Spain this year. That is according to a report summarising the findings from the most recent Iberian Conference, an event dedicated to the real estate sector, held in Madrid on 5 February 2020.
The analysis carried out by the bank explains that although developers continue to sell houses, the value of the large property developers is weakening due to the uncertainty surrounding their ability to fulfil their business plans. “Despite a rise in the number of homes delivered, which generates cash flow, the increased implementation risks of the business plans and the doubts surrounding future acquisitions are continuing to undercut their valuations,” says the report cited by Cinco Días.
