| Spain’s property sector could see as much as 50% of its value disappear, says Merrill Lynch Wealth Management’s Bill O’Neill. The Banco de España has described the financial system’s exposure to construction and real estate as “problematic” and O’Neill – chief investment officer for Europe, Middle East & Africa at Merrill Lynch Wealth Management – believes current real estate prices could sink further.
O’Neill says: “So far, real estate prices have fallen about 22% from their peak. It is credible to expect a lot more to come, with an ultimate decline of 40-50% looking plausible given the extent of the boom and what we have seen in Ireland and the US.”..............................................Full Article: Source
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