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The Spanish Housing Market: The Likely Effects on the Economy

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  • Marisol Esteban

    (University of the Basque Country, Bilbao, Spain)

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    Abstract

    The Spanish housing boom has finally come to an end by the second half of 2007 and the change in the property cycle is under way. The future of the Spanish housing market is very difficult to forecast because uncertainties are great in the national and international markets. Despite so many predictions of a crash of the Spanish real estate market, the evidence available suggests a gradual adjustment of demand and supply. The aim of this paper is threefold: (1) to analyse the workings of the housing market in Spain and identify the determinants of the housing boom in the last decade; (2) to analyse the prospects of the housing sector; and (3) to discuss the likely effects on the economy as a whole of the current downturn in the housing market.

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    Bibliographic Info

    Article provided by Cyprus Economic Society and University of Cyprus in its journal Ekonomia.

    Volume (Year): 10 (2007)
    Issue (Month): 2 (Winter)
    Pages: 138-159

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    Handle: RePEc:ekn:ekonom:v:10:y:2007:i:2:p:138-159

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    Web page: http://www.ekonomia.ucy.ac.cy/
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