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What happens to Spain’s incomplete developments
All over Spain, there are thousands of abandoned houses, a consequence of the incredible boom and bust of the Spanish property market. Some were half-built and then left by construction workers at the height of the financial crash when their companies could no longer pay them; others had just had their foundations completed before 2008 hit. But what happens to them now?
Making the homes cheaper
Unfortunately, firms can’t just lower prices. People are lairy of buying half-finished properties in Spain since so many lost out ten years ago, and even if they did buy the home extensive work would have to be done on it in order for it to be habitable. It wouldn’t just be a case of adding exterior walls and calling it a day, but almost beginning from scratch.
There’s also the issue that if these properties were bought, others would not be, and so the owners would essentially live in a ghost town with no neighbours. It’s unknown if local authorities would even be able to connect sewage, gas or electric to these homes or if they wouldn’t have it in their budget to even create pavements.
Below are specific developments in Spain which have left hundreds out of pocket:
- POLARIS WORLD
- MANILVA GARDENS
- MANILVA BEACH
- PRINCESCA KRISTINA (MANILVA)
- ALBORAN HILLS
- RODA GOLF
- PARALEGA GOLF
- CORVERA GOLF & COUNTRY CLUB
Could they be demolished?
With a number of these developments being repossessed as owners are unable to repay mortgage repayments on them, could they be demolished?
Majority of houses in such developments were financed by one lender, and with maintenance costs rising, demolishing the developments entirely could be a possibility for them and in the long run would cost less.
Clearing these developments would also increase the value of homes close by; a house next to an abandoned housing development will collect less money in a sale than a home next to a field or an undeveloped plot. This in turn would help boost Spain’s struggling housing market.
A lesson to be learned
However, these abandoned plots are a stark reminder of what happens when companies perform irresponsibly and forget about the people, to only focus on the profit. For example, back at the height of the property boom, companies where building developments over and beyond market demand.
Where is your investment?
For many who invested in ‘off-plan’ developments across Spain, the prospect of ever regaining money lost on those abandoned developments was bleak, however, now it is possible to regain all lost funds and more as banks have been ruled liable by the Spanish High Court to refund all who have been affected.
How you can get your money back
With our own specialised Spanish legal team, EU Property Solutions are now acting on behalf of many who had fallen victim to these developments. To find out what you could be entitled to and how you could claim it back, check out our deposit reclaim calculator over on our Spanish Deposit Reclaim page.