Credit Crunch and Spanish Property

Spanish & Mallorca Property Market Report - December 2008
By David Novi

The Spanish property market was the European market most likely to crash when the credit crisis hit. Here we examine the ingredients of disaster

With Spain arguably the number one destination for British buyers of foreign residential property - for investment, second homes, or retirement in the sun - it is hardly surprising that there is so much interest in the Spanish property market. Hardly a day goes by without some ‘crisis on the costas’ story in the press, bemoaning the collapse of prices and demand, fully illustrated with images of half-built apartment complexes and swathes of empty sun-drenched villas!

Some interesting facts and figures
• Spanish house price inflation was 5% in 1998, rose to 17.75% in 2004 and slumped to 5% in 2007.
• Property prices increased 2.2 times in real terms between 1996 and 2006.
• Between 2005 and 2007 the interest burden on Spanish … to read the full article, please follow one of these links:

Spanish Property | Resale Property in Spain | Villas in Spain