Spanish Real Estate: The crisis continues ?!

the situation that has developed today in Spain, the cost of one of the most troubled countries of the European Union (balancing on the edge of state bankruptcy, which has been more than a year engaged in Greece, leave out, if not the most typical example of capitalist management) can be explained inFirst of all violent crisis in the real estate market.And, often, real estate, freshly built in the boom years, but until now, and has not found a buyer.Millions of square meters, the entire apartment complexes across the country are empty - some have even been cases of unauthorized settlement.

Real estate prices began to fall in the autumn of 2008 and continued to fall today, which greatly devalued assets of many banks find that they do not have collateral for mortgage loans, or that this software does not meet the borrowed amount.The situation which threatened the collapse of the banking system, it is saving by using poproshennogo at the Eurogroup purpose loan in the amount of 100 billion euros, but fundamentally the situation has not changed.

Credit institutions have offered to get rid of the so-called "bad" assets, and they really seem concerned about this, often simply vyshvyrivaya the street and sbiva debtors on the balance of unsold apartments.Recent sometimes at bargain prices.The trend, however, was short-lived, as the first measure has led to literally wave of suicides among the Spaniards who found themselves not only without a job but without a roof over his head, while the second - downright rare as trading at a loss, banks have not yet learned.

Government for its part, somehow trying to revive demand, including with foreign capital.So, for example, it has caused an unprecedented spike reviews Initiative study, according to which any foreigner even from outside the EU who has bought a new property in Spain worth over 160 thousand euros, can obtain a temporary residence permit.Immigrant organizations have declared injustice, while the opponents of the ruling People's Party raised concerns about the country's legalization of criminal capitals of Russia and China.These objections, however, are unlikely to lead to any real response of the government, as the country is in desperate need of cash in order to reduce the glaring deficit.In almost three times the standards established for countries "eurozone".