Holiday homes in Spain make up housing surplus
Holiday homes in Spain make up housing surplus
A report commissioned by a Spanish savings bank has revealed that Spain’s housing surplus is concentrated around the country’s coastal areas, as reported by Spanish Property Insight.
Spain’s recent drive to build more homes has resulted in a surplus of 800,000 properties (as of 2010), 85% of which, or 722,500, are
Spanish holiday homes, according to savings bank Catalunya Caixa which commissioned the report. The overwhelming majority were in coastal resorts but a minority were in inland areas such as Madrid and its surrounding area of Castilla y Leon and the North of Spain.
The construction boom shows no sign of slowing; the addition of another 150,000 new homes this year and a projected 125,000 next year contradict Spanish government predictions of just 200,000 homes available for sale by 2013. Although formation of new households is set to reach an average of 138,000 per year between 2011-2015, this is far less than the numbers of new households that were formed in the boom years between 2000 and 2008, which reached an average of 430,000. This means slower uptake for the new housing over the next few years.
The demand for
holiday homes in Spain is less affected by the formation of new households in Spain, although this can change according to country across Europe. However it indicated that this demand is unlikely to return to its previous levels.
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8 July 2011
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