When the Spanish housing bubble finally popped, home prices predictably plummeted and new construction ground to a halt. At the time, Spain was the world's second most popular tourist destination in the world, after France. But when the global economic recession struck just a few months later, Spain was hit like a tonne of bricks.
One region of the country known as the Costa del Sol was particularly hard hit. Formerly a series of small fishing villages, Costa del Sol was transformed into a hot spot for international tourists at the end of the twentieth century.
The region was still growing at a brisk pace when the housing crisis struck. Of course, the problem was not confined to Spain alone. The UK became mired in a protracted recession and tourism to Spain fell by more than ten percent. This is important because Spain is the number one destination for UK tourists and property rentals in laquinta Golf declined.
Where are they now? Fortunately, the UK has emerged from their deep recession. But they are still fighting a record deficit and increasing unemployment. As a result, fewer people are going on holiday.
In the meantime, the Spanish housing market is still under pressure, as home sales remain stagnant and home values continue to fall. Not surprisingly, no new construction projects are planned for the Costa del Sol region.