A recent report published by Spanish savings bank Catalunya Caixa has revealed the extent to which new housing stock is being built in the country’s coastal areas, as opposed to its inland areas. According to the report, the drive to build more houses and apartments across Spain created a surplus of approximately 800,000 properties over 2010, of which 85% were built in coastal resorts. Inland areas such as Madrid and Castilla y Leon made up much of the remaining 15%.
Despite the country’s economic problems, the construction of many more homes in Spain’s coastal regions looks set to continue. Many have criticised this development, since it makes housing far more scarce in some interior regions – particularly a problem for locals.
The Spanish government predicts there will be around 200,000 homes for sale in Spain by 2013, but others suggest this figure could be significantly higher. The majority of these will of course be by the coast.
While the slowdown in the vital construction industry is a great source of concern for the Spanish government, the much more significant tourism industry remains buoyant – an industry that has a knock on effect across dozens of other industries, from car rentals and airlines to holiday property insurance and retail.
As Spain seeks ways of strengthening its economy, many will hope the perennial draw of Spain’s coasts will help buoy the country’s finances in the meantime.
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