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Spain Real Estate News

What's really happening in the real estate world in Spain? The EOS Team are going to be keeping you up to date with everything that's happening from a market perspective.

Ghost Towns Emerge From Real Estate Crash In Spain
17 February 2012 @ 15:55

Towering apartment blocks, complete with swimming pools and playgrounds, loom over empty streets, weed-filled lots and gaping excavation pits. The lone bank in this mega-development nicknamed "Manhattan" closed two years ago and most storefronts are bricked up.

Apartments galore are for sale here and prices are plunging.

More than 13,000 apartments were supposed to go up to create a mini-city for 30,000 people just 45 minutes outside of Madrid. But only 5,100 were built, many are uninhabited and regular Spaniards who bought them as investments are now competing to offload them for huge losses.

Spain's real estate crash and economic implosion have turned what was supposed to become a vibrant suburban paradise for young Spanish couples and their children into one of the most visible monuments of the country's boom gone bust. Such modern-day ghost towns have become a familiar part of the Spanish landscape, abandoned shells left to slowly decay.

The number of foreclosure proceedings skyrocketed during the economic crisis. Nearly 530,000 were granted by courts from 2008 through September of 2011, most to banks taking homes, housing developments and vast tracts of land for residential and commercial real estate projects that may never become reality.

Read more at Huffington Post



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18 Comments

Kate said:
18 February 2012 @ 13:40

And yet every week we read how the local town halls are granting licences to build social housing!!! Madness. Why can't they take over the empty building from the banks instead of blighting the countryside with more apartment blocks.


LLOYD LUPIN said:
18 February 2012 @ 17:46

How long will it take for greedy Builders.Banks and Town halls.plus the Government to heed what all of us knew was bound to happen. Unchecked/uncontrolled construction = THE STATE OF THE NATION. COMBINED WITH THE CORRUPTION STEEPED IN SPAIN LIFE.


LLOYD LUPIN said:
18 February 2012 @ 17:47

How long will it take for greedy Builders.Banks and Town halls.plus the Government to heed what all of us knew was bound to happen. Unchecked/uncontrolled construction = THE STATE OF THE NATION. COMBINED WITH THE CORRUPTION STEEPED IN SPAIN LIFE.


mickbrown said:
18 February 2012 @ 18:29

"No more boom and bust". Politicians should not be allowed to run countries.


Big Bad John said:
18 February 2012 @ 18:51

We had a villa built here in the Almanzora Valley six years ago. Now we are surrounded by at least 60 new/unoccupied villas. Where did all the money come from to build all these properties? There must be a lot of builders out of pocket???


mark brown said:
18 February 2012 @ 20:59

if there are so many properties for sale in spain why are the prices not coming down more to encourage buyers? I am looking to buy a property and owner occupiers dont want to sell at reduced prices and are being unrealistic on value one would think that banks and builders are being more realistic but I feel that as the values are related to profit they are also not reducing prices to realistic and affordable levels as they would show a loss.

when will realism apply?


Paul de Canillas said:
18 February 2012 @ 22:17

If property prices came down to a level at which they would feel readily, many (all but 2 or 4) of Spanish banks would have liquidity problems, as they all hold so much property as security for debts, whether private mortgages or loans to developers. Yes, when you see housing or industrial estates with no residents and in the middle of nowhere, you really wonder who lent the money and who looked at the business plans. Sadly, a lot of the empty properties are not where social housing is needed. Even worse, for social housing, people have to put down quite a significant deposit and many who need housing just do not earn enough. In our area (Velez-Malaga) the ayuntamiento has suspended a VPO project for lack of deposits paid.


Paul de Canillas said:
18 February 2012 @ 22:18

If property prices came down to a level at which they would feel readily, many (all but 2 or 4) of Spanish banks would have liquidity problems, as they all hold so much property as security for debts, whether private mortgages or loans to developers. Yes, when you see housing or industrial estates with no residents and in the middle of nowhere, you really wonder who lent the money and who looked at the business plans. Sadly, a lot of the empty properties are not where social housing is needed. Even worse, for social housing, people have to put down quite a significant deposit and many who need housing just do not earn enough. In our area (Velez-Malaga) the ayuntamiento has suspended a VPO project for lack of deposits paid.


garys said:
18 February 2012 @ 23:17

Mark Brown, I am not looking for a profit but if you would like to buy my property for the price i paid then i would sell to you now


garys said:
18 February 2012 @ 23:18

Mark Brown, I am not looking for a profit but if you would like to buy my property for the price i paid then i would sell to you now


garys said:
18 February 2012 @ 23:29

Mark Brown, I am not looking for a profit but if you would like to buy my property for the price i paid then i would sell to you now


Steve said:
19 February 2012 @ 02:22

mark brown said: Would you be happy to lose your life savings on a 30% plus loss on the value of your home? That's realism for many people!


Steve said:
19 February 2012 @ 02:23

mark brown: Would you be happy to lose your life savings on a 30% plus loss on the value of your home? That's realism for many people!


Davud C said:
19 February 2012 @ 06:43

Property Prices may not not be coming down - but whilst they are not going up inflation is chipping away at their value and gradually making them more affordable to more people. Additonally, in a boom and bust world, most people know that prices will go up again if they hold on. It is difficult to sell now because the mortgages are not about - and selling now just makes the loss of value of property into a reality. Still i have seen virtually completed complexes abandoned in Tenerife and cannot help wondering what has happened to all those who have put deposits down on them


KenA said:
19 February 2012 @ 10:00

Mark Brown - Owner occupiers do not want to reduce the price of their property, as they would be loseing their life savings (understandable) Banks can bring the price of property down to the amount they loaned the developer, with out loss, I am in rental property at moment, the developer wanted 345,000euro for it (present climate not worth it) just gone back to bank & they will sell it to me for amount of loan to developer - 140,000euro Get in touch with local banks or check web sites for distressed property sales (Banks better as no estate agent fee's)


Dianne said:
19 February 2012 @ 17:40

We had our property in England for sale for 4 years and we advertized to swap with some-one who could not sell in Spain and it didnt cost us anything to advertize as we advertized it on Gumtree for a swap for something simular in Spain and now we live here in Spain in Tallante and have been here for month now.GOOD LUCK.
Dianne


here said:
19 February 2012 @ 20:22

We have paid thousands into the hateful bank for our corrupt mortgage. If someone came and paid us the mortgage amount i'd be out of the door with my suitcases packed by 9am tomorrow morning!! Forget the money we've paid out already, we just want OUT!! Others who have handed the keys back have walked free, a generation of people 'bankrupt' for the rest of their lives here in Spain. We have my father in law as a guarantor so we can't hand keys back or they'd chase him

OR was it a lot of the immigrants who received thousands in cash for more than 100% mortgages. Thousands of empty flats of 150,000 euros now offered at 25k. Banks taking the loss. The bank managers here should be in prison for the money they lent!!!


andrew harvey said:
20 February 2012 @ 15:01

Why do we not in the u K bundle up the worst of our neighbours from hell and send the whole F-----g lot to one of these ghost towns? We could pay the spanish government to take them. We would benefit, the Spanish treasury would benefit and the clowns we send there would be subject to the no nonsense approach to law and order of the Spanish police.


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