Companies offered assistance if they rent out their unsold stock
The Spanish Prime Minister, Mr. Rodriguez Zapatero announced several measures to alleviate the real estate market situation. In his speech at parliament Mr. Zapatero stated: Firstly, stock exchange-listed investment companies in the real estate market will be authorised. These companies will enjoy a favourable tax regime, will promote the rental market, will facilitate the access of investment in buildings to the small and medium investor, will provide flexibility to real estate investments of companies, will contribute liquidity to real estate investments and therefore will contribute in making the real estate market more dynamic. Secondly, we will start up a new line of mediation by the Institute of Official Credit, whose objective will also be to encourage the supply of real estate rental and to facilitate the adjustment in the sector. In particular, the transformation of loans for the construction of houses in longer term loans will be facilitated to real estate promoters and in exchange those will be committed to incorporate the houses to the rental market during a determined period of time. This performance will be financed initially with three billion euros, which may be increased based on the response of the market.
