Spanish property bubble

The Spanish property bubble is the collapsed overshooting part of a long-term price increase of real estate prices in Spain. This long-term price increase has happened in various stages from 1985 up to 2008. The housing bubble can be clearly divided into three periods: 1985–1991, in which the price nearly tripled; 1992–1996, in which the price remained somewhat stable; and 1996–2008, in which prices grew astonishingly again. The 2008–2014 Spanish real estate crisis caused prices to fall. In 2013, Raj Badiani, an economist at IHS Global Insight in London, estimated that the value of residential real estate has dropped more than 30 percent since 2007 and that house prices would fall at least 50 percent from the peak by 2015. Alcidi and Gros noted; “If construction were to continue at the still relatively high rate of today, the process of absorption of the bubble would take more than 30 years”.