Despite the recovery of the market, there are still some huge differences between what was loaned in the good times and the market value of the property now.
Building activity is increasing. Many new individual villas, though the financial rationale of those is uncertain as there are still so many available for sale, with those having had the choice of the best sites in the past.
New flatted developments are also being created with the developers presumably been reassured by the appropriate percentage of reservations off plan.
Older ‘skeleton’ developments that were not completed during the last boom are being acquired and completed by new developers.
‘No sign of housing market overheating’, says Bank of Spain. Generally, that is probably the case. However, in certain popular areas there must be a risk that everything is proceeding along a very similar course to before the last crisis. Continue reading