Spain in "construction fever"
Spain in "construction fever"New homes are springing up all over Spain as the country undergoes a period of "construction fever", according to an expert.
This increase in supply could lead to a slowdown in Spanish property price rises as buyers no longer need to struggle for a limited number of homes.
Many companies are giving their customers the chance to buy properties or holiday homes before they have even been built.
"Construction fever is raging all over the country, but particularly on the Mediterranean coast, the entire length of which seems to be bristling with cranes," said Mark Stucklin of Spanish Property Insight.
However, he maintained that the country's government is aware that building too many new properties could lead to oversupply, which in turn could lead to a housing market crash.
He added: "The Spanish government is frantically talking up a soft landing and given Spain's healthy level of economic growth, this is still on the cards. But it seems obvious to me that the property market in many popular coastal areas will struggle to absorb all the new properties being built."
12 December 2006 Print this article