Spanish and Italian commercial real estate markets meltdown

My jaw dropped when I read this Financial Times report on the commercial real estate markets in Spain and Italy: The Spanish and Italian commercial property markets have all but collapsed with the number of transactions in both countries falling more than 90 per cent in the three months to July as investors worry about the future of the eurozone. Only three property transactions were registered in Spain during the second quarter, down from 58 deals in the previous quarter. In Italy the slide was even more pronounced, with just two buildings being traded during the period, down from 56, according to data from Real Capital Analytics. The severity of the decline highlights investors' concerns about the risk of owning fixed assets in the two countries given the uncertain direction of the eurozone economy., The total value of transactions for offices, shops and industrial property in Spain was €67m for the second quarter, down 74 per cent from €260m in the first quarter....(Read Full Post)