Astroc Mediterraneo is leading the way of what has been described as 'the end of Spain's 10-year real estate boom'. Atroc's share price gained more than 1000% since the company was listed on the Madrid stock exchange in June last year, but its shares plummeted as much as 37% on Monday and dropped another 9.48% on Tuesday to EUR 15.95.

Astroc Mediterraneo is leading the way of what has been described as 'the end of Spain's 10-year real estate boom'. Atroc's share price gained more than 1000% since the company was listed on the Madrid stock exchange in June last year, but its shares plummeted as much as 37% on Monday and dropped another 9.48% on Tuesday to EUR 15.95.

The drop in Astroc's shares price hit other Spanish real estate groups, such as Colonial (12.62%), Fadesa (11.06%), Inmoracal (11.27%), Urbas (13.24%) and Metrovacesa (4.55%). On Tuesday, news agency Reuters went as far as saying that the European shares are being 'led down by Spanish property stocks,' citing Germany's Hochtief and Bilfinger & Berger as an example.

Last week, Astroc Mediterraneo's share price already fell 43%, wiping EUR 2.3 bn off its market value, in the wake of disappointment with the company's figures for 2006. The share price recovered 6.7% after the company denied that its core shareholders Nozar and Pontegadea Inversiones, the investment vehicle of Amancio Ortega, were going to sell shares.

Astroc chairman Enrique Banuelos, owner of 52% of the Spanish builder, has seen the value of his stake drop by 65%, or about EUR 1.8 bn in less than a week. Only a month ago, Forbes valued Banuelos’ personal fortune at EUR 5.8 bn, which added him as the richest self-made newcomer on its billionaire list in March. The Spanish entrepreneur was not even a billionaire when he floated Astroc on the stock exchange in Madrid last year, Forbes said.