Real Estate: Very poor performance in the fourth quarter of 2007

Most of the Spanish real estate have already submitted their results for the year 2007. Results have been poor, with large declines in net profit; Realia (-13%), Metrovacesa (-30%), Reyal Urbis (-68%), Rent Corporation (-26%), etc. ..

But if we analyze the results for the fourth quarter alone, the results are even worse. When reviewing the results of these companies should be a study of this last quarter, as it gives a closer idea of what may be the year 2008.

Corporation income, for example, has had virtually no activity in this last quarter. Sales have been very limited and the company had a loss of almost 4 million.

If this situation continues it is likely that mñás in fall 2008 many Spanish real estate losses.

Other data are taken into account the sharp decline in pre-whole in 2007 (Realia -60%, -68% Metrovacesa, etc..) And the sharp increase in debt, also in 2007 (Corporation Income + 47% Metrovacesa +33%, etc.).

Are pre-reservations, namely, the signals delivered by our customers as a step to formalize the sale a few months later. Andalusia strongly reduced in the pre-2007 is very possible that in 2008 the sales fall in a similar sales. Are even beginning to be cases of clients who leave the signal given for not having to buy the homes they had booked.

Rising debt is a result of reduced sales, as they are not selling the properties they have in stock can not repay loans.

Spanish real estate developers need cash urgently, it is very likely that tenagn to reduce prices further (and some real estate advertised discounts of up to 20%).