SPAIN was one of the worse to be affected by the 2008 global financial meltdown spinning the country into crisis. Bankrupt developers drop their tools and walked off site leaving projects unfinished across the country.
They talk about the crisis being over, that the economy is back to health, so what are the banks doing with the many abandoned projects that remain untouched after seizing them from the defaulted developers an estimated 3.4 million are still unoccupied. It makes no sense.
Paradoxically, Spain is experiencing another upswing in the housing market, albite small it is picking up momentum with new estate agents opening along the white coasts as the number of homes bought or sold reached the highest level since the start of the crisis.
As they begin dusting off their cranes ready for the building boom what is being done about the abandoned building projects.
Meanwhile, people are still being evicted from their homes after suffering the massive depreciation of their houses due to the property bubble bursting in some cases up to half the cost of the purchase price a figure that will never be recoverable.
Is it too late to do something with these shells? I visited one site in La Nucia guarded only by a ring of fencing and visited by feral cats and graffiti artists. The buildings were open to the elements and now dilapidate eyesores.
Interviewing a property developer that has set up shop in la Nucia to offer clients new builds speculating the upswing in the market. When asked the question why not buy these abandoned properties at a discount and finish them. First, they said there are no more cheap abandoned properties they have all gone. The banks simply won’t let them go for a discounted price that is reasonable. Most of what are left are in such bad condition, including the biggest problem their infrastructure, you may as well start again.