Spanish property crisis
January 1, 2008
With 2007 behind us, the majority of experts agree that the “soft landing” or the “non-existent property bubble” was a myth and the reality of the past 12 months is
way different. Prices are falling, sales are slumping completely and property developers are already talking about making workers redundant.
Some people more alarmist than other but there is overall concensus: Spain’s property sector is in crisis!. This crisis will take its toll, considering that the GDP of Spain is made up by 7% of the property business and the sector alone employs over 10% of Spanish workforce. There are talks about letting people go. The BBVA reports it will be around 250,000 workers over the next two years, whereas leading property developers are talking about 400,000.
Jesus Garcia (Metrovacesa): “There is a crisis in Spain’s housing market” and as the Spanish property registry notes, sales are down, just from January to October there has been a 12% drop! Spain’s leading property website: idealista.com has confirmed that Spanish property prices have fallen, this being the first real fall since the year 2000 (when it began reporting).
(C) Photo rinzewind
Distributed under Creative Commons
Written by Greg · Filed Under Business
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