The Spanish real estate sector enters a second bubble, the financial, the vulture funds

The Spanish property market fails to boot as already noted repeatedly Hispanidad, so there is still a large stock of unsold homes. But this a much more worrying aspect joins if possible is that the so-called housing bubble is exploding, but creating another bubble, in this case financial, created by vulture funds.

The sale of homes in February was limited to 25,717 operations, which fell 27.6% over the same month of 2013, according to Statistics on Transfer of Property Rights (STPR), published by the National Statistics Institute (INE) on Wednesday. In January the figure was not good, because the decrease was 23.2% and the February and accumulate 10 consecutive months of declines.

In view of these data there is no doubt that the housing market is not getting off in Spain, however, there are those who want to contradict statistics for their own interest, no doubt, as the funds have a contrary position.

Note that the sale of property has become a business opportunity for foreign investors, as Hispanidad told, for it buy one four properties for sale in Spain, ie 25%, according to Eduardo Molet consultant Estate of Spanish and foreign financial institutions and founder of Network Real Estate Experts. And the fact that housing has lower prices first attracted investment funds and then to foreign investors, including individuals. But surely, they will lose even more for the Spanish dares to buy.

These vulture funds are Fidelity International, which has followed in the footsteps of George Soros in Hispania and Property Assets purchased 1.9% stake. But it is not the only one, the underwriters of Hispania also follow in the footsteps of Soros, as Goldman Sachs International and UBS Limited have exercised their right to purchase 10% stake in the deal. Add to that that Hispania seeks investment opportunities in selling the assets SAREB and financial institutions.

But there are not only investments but also IPOs with a positive reaction, as The Wall Street Journal said. This behavior had it, for example, the two listed companies of real estate investment (REIT) and Lar Hispania Spain Real Estate Assets Real Estate, as captured in its output 500 million and 400 million, respectively. Besides this media said at least 15 real estate companies have already registered with the Spanish tax authorities, so it is likely that more IPOs occur.

This shows that our country is taking a subprime to Spanish, but unlike what happens in the U.S., do not buy property here to turn them into real estate, but to invest in stock market and over successfully. So talk bubble, as the Spanish property market in the real economy does not work, but is doing very well in its IPO. That is, you are creating a new bubble, but financial, driven mainly by investments vulture funds that can be perhaps more worrying than the existing one.

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