Stock markets fall over portuguese bank fears

Photo: SinanyUzakli

Shares in Banco Espirito Santo plunged 17 per cent this week when concerns were raised about "accounting irregularities", reports the BBC. They first arose last year, prompting an audit into the group's accounts.

In the wake of the drop, stock exchanges followed suit, as worries recalled the days of global financial crisis gone by. Indeed, the results have become public just as Portugal exited its bailout programme and confidence returned to the  property market, with sentiment upbeat among agents and experts alike.

Madrid, Lisbon and Paris all saw their stock markets fall, as well as the Dow Jones on Wall Street.

Now, agents are arguing that this latest stock scare will send more people into bricks and mortar investments.

"Its this uncertainty in the financial markets that is pushing more and more investors into the property sector as tangible assets become more attractive and a lot more secure," says Alistair Barton, Sales Director of MBI Consulting, who are currently managing a care home investment in the UK.

"In addition to this the security of a hands off, long leaseback option as offered by Mbi consulting on there UK commercial investment portfolio gives buyers a secure fixed double digit return for a 10 year period net of all running costs."