The Spanish real estate market collapses!
March 27, 2008
Yesterday Spain’s National Institute for Statistics (Instituto Nacional de Estadística - INE) presented us with some horrifying data - housing sales have fallen by 30% compared to the same period last year!
The people of Spain feel fooled as Zapatero has insisted since months that Spain is not encountering a crisis and they now see that this is not the case. The residential sector is encountering it’s worst moment in history.
This once prosperous sector will demand new and more intense tax deductions in the acquisition of new housing. The objective is to give more breathing space to this crucial sector which is facing a most grave situation. The fear of impossibility of payment has been extended throughout the country and mistrust towards this sector has grown.
Businesses and trade unions are considering demanding an urgent crash plan to keep the activity stable in a business that employs more than 15% of the active labour population.
The “Asociación de Promotores y Constructores de España (Apce)” (Spain’s Real Estate and Construction Association) reminds us that “the prosperity of the general economy and consumption function in parallel with housing”.
Written by Sophie · Filed Under Business
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