Thanks to the Spanish property bubble.
The property boom in Spain has left an estimated 1.5 million unsold new homes. That doesn’t count developments where building simply stopped. There have been 2.5 million dwellings built in Spain since 2004 only 1.5 million of those properties sold. More new homes were built than in the UK, France and Germany put together.
In many tourist communities on the Costa Del Sol, Britons and Spaniards have scrambled to snap up their dream holiday or retirement home.
Spain’s development ministry estimates there are 687,000 unsold new homes for sale.Other studies put the number as high as 1.6million in the nation of 47million, where 80 per cent of the population already lives in owned homes, a rate much higher than nations like France, Germany, Italy and the United States. There is no government figure for used homes for sale, but estimates range into the millions.
Ciudad Valdeluz is a suburb 60 kilometers (37 miles) northeast of Madrid, Spain. It was to be one of the largest such developments in Spain, with an original plan of 13,500 units costing over €9 billion euros to build. It was meant to be city of 30,000, but only 3,000 have been sold and 1,000 people took up residence there after construction halted in 2008 with 75% of the city unfinished due to the economic downturn.
Today, Ciudad Valdeluz resembles a ghost town with the few residents being served by a supermarket, a corner shop and a medical center open twice a week. A security patrol watches over the deserted streets and the empty buildings.
Developers are desperate to get people to move into the apartments and are slashing prices to up to 50 per cent of their original prices and can be purchased for €65,000 euro. They can be rented for around €375 euro monthly. Though I’m sure even these low numbers can be negotiated down. Owners state that ‘Selling or renting now is like winning the lottery,’
Monica Torremocha Orocco is one of few who is interested in moving into the area. She says that rents there have fallen by more than 400 euros in a month.
Apartment blocks have ground floor commercial space for small businesses that would come if there were enough residence to validate opening a store.
In the town of Yebes more than an hour’s drive from Madrid, 9,000 apartments and small houses were supposed to be built in a bucolic country setting next to a high-speed train station so workers could get downtown in less than 20 minutes.
But only 1,500 were finished before developers went broke, 3,000 people live there instead of the projected 30,000 and government officials never launched the train service.
‘The station is built, the trains are bought but they never started running,’ said Mayor Joaquin Ormazabal.
Spanish Ghost Towns – Legacy of Spain’s Housing Crash (CNBC)
There are also two completely unused airports. Only one hour out side o Madrid the capital of Spain. Bot costing €1bn to build.
The passenger terminal could process a maximum of 10 million passengers a year, and its cargo facilities a maximum of 47,000 tonnes a year.