Property developers on Spain’s holiday coasts were already feeling the pinch well before the present credit crunch.
Hundreds of estate agency offices have closed in the past year since the bubble burst on a construction boom that had been powering Spain’s economy for some ten years.
At the Malaga property fair, the company said that buyers of one of its £620,000 ($1 million) beachside homes would also get a one-bedroom flat at a golf resort.
Organisers of the fair reported a significant drop in exhibitors at this year’s event and added that the price of homes on offer had fallen by up to 20 per cent from last year.
The President of Spain’s Association of Constructors and Developers, Guillermo Chicote, said the industry desperately needed government help to aid its recovery. “If the government doesn’t react, this situation could last for another three or four years,” he said.
Even super-rich celebrities are not immune to the property squeeze in Spain. David and Victoria Beckham have apparently been trying to sell their luxury villa in the capital, Madrid, since last year when the couple moved to the US. The price has reportedly come down from £5 million ($8.6 million) to £3 million ($5.2 million).
The five-room villa in the chic suburb of La Moraleja is ‘incredible’ according to the selling agent. It includes two acres of land, a swimming pool, tennis courts, a small soccer pitch and a children’s playground.
by Andy Moreton