Three out of four construction jobs lost in Spanish property slump

  • 14 years ago
  • Uncategorized

Spanish Construction jobs down

Of all the property markets in Europe, Spain has been hit as hard as any other.  Prices have fallen considerably over the last three years with the number of distressed properties – those being sold having been repossessed by banks – hitting record levels.

And, the problems in the property market have also led to huge job losses in the country’s construction sector.

Builders forced to seek alternative jobs

The Taipei News reports that ‘three out of four jobs were lost during Spain’s housing bubble in construction and related sectors.’ 

A decade ago, Spain was building around 700,000 homes every year – as many as France, Germany and Great Britain combined.  However, since the global financial crisis, the country’s economy has suffered, with around one in five Spaniards now out of work.

The country has the highest unemployment rate in the European Union with much of this in coastal areas where the construction industry has almost died a death.

Distressed and vacant properties on the rise

A recent report by Moody’s Investor Service showed that a record 27,561 repossession procedures were reported in the first quarter of 2010 – up 59 per cent on the same period in 2009. 

The Taipei News also reports that ‘it is estimated that 16 percent of Spanish homes are now vacant.’ The newspaper also reports that ‘a home purchase tax deduction expires in Spain on December 31st, when it will become more apparent how many homes remain unsold’.

With record numbers of distressed and vacant properties, there are opportunities for British buyers to snap up property bargains in Spain.  Banks often sell distressed homes for significantly less than market value in order to recoup some of their cash, so there are properties to be bagged at knockdown prices.

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