Spanish developers admit that ˝toxic properties˝ should be demolished
Friday, October 15, 2010 @ 3:55 AM
For the first time in Spain, property developers have recognized in public that it could be better to demolish developments that were built up in the Spanish property boom and will never be sold.
From our point of view, the ˝junk stock˝ should be excluded from the market since they are a aggravating factor for the normal recovery of the market, rather than demolished. ″Junk properties″ that were built up by speculators in the peak of the boom are now a burden (toxic assets) for the real surplus of property that potentially can be sold in a reasonable period of time according to the reality of the market.
Why not to demolish them? This is because demolition will increase the economic cost of the development, and also generate an environment cost and a moral cost that Spain can not now afford.
To read the full article click here