Spanish property bubble
|This article may be expanded with text translated from the corresponding article in the Spanish Wikipedia. (April 2011)|
The Spanish property bubble refers to the massive growth of real estate prices observed, in various stages, from 1985 up to 2008 in Spain. The housing bubble can be clearly divided in 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. Coinciding with the late 2000s crisis, prices began to fall.
House ownership in Spain is above 80%. The desire to own one's own home was encouraged by governments in the 1960s and 70s, and has thus become part of the Spanish psyche. In addition, tax regulation encourages ownership: 15% of mortgage payments are deductible from personal income taxes. Further, the oldest apartments are controlled by non-inflation-adjusted rent-controls  and eviction is slow, thereby discouraging renting. Banks offered 40-year and, more recently, 50-year mortgages. Unlike Ireland, Spanish labour costs did not track house market rises.
As feared, when the speculative bubble popped Spain became one of the worst affected countries. According to eurostat, over the June 2007-June 2008 period, Spain has been the European country with the sharpest plunge in construction rates. In 2008 new constructions came virtually to a halt, but prices were initially relatively stable with sellers reluctant to offer large discounts. The national average price as of late 2008 was 2,095 euros/m2 Actual sales over the July 2007-June 2008 period were down an average 25.3% (with the lion's share of the loss arguably happening in the 2008 tract of this period). So far, some regions have been more affected than others (Catalonia was ahead in this regard with a 42.2% sales plunge while sparsely populated regions like Extremadura were down a mere 1.7% over the same period).
Unlike much of the United States, Spain does not recognize mortgage loans as nonrecourse debt. Since most foreclosures only accounted for 60% of the loan, those evicted have large debts for property they no longer own.
Prices and number of houses built 
According to the reports of the Bank of Spain, between 1976 and 2003 the price of housing in Spain has doubled in real terms, which means, in nominal terms, a multiplication by 16. Spain was ranked third or fourth among OECD by house prices growth. According to the Bank of Spain, in the period of 1997—2006 the price of housing in Spain had risen about 150% in nominal terms, equivalent to 100% growth in real terms.
Real estate debt 
One of the main effects of this situation is the growth of household debt. Since usually the purchase of housing, whether to live or to invest, is made from mortgage loans, the price increase implies an increase in debt. The indebtedness of the Spanish tripled in less than ten years. In 1986 debt represented a 34% of disposable income, in 1997 it rose to 52%, and in 2005 it came to 105%. In 2006 a quarter of the population was indebted with maturies of more than 15 years. From 1990 to 2004, the average length of mortgages increased from 12 to 25 years. The Bank of Spain reported that household savings in 2006 has been overwhelmed by debt.
In fact, the Bank of Spain has warned each year about the high indebtedness of Spanish households, which according to the institution was unsustainable. The private debt stood at 832.289 billion euros at the end of 2006, an increase of 18.53% year-on-year, and reached 1 trillion euros by the end of 2010.
The Bank of Spain also warned on the excessive indebtedness of the construction industry.
President of the Chambers of Commerce of Spain, Javier Gómez Navarro, said at an event organized by the Association of Financial Journalists, entities "never recover" 30% of the debt owed to the housing sector. According to the Bank of Spain, this debt amounted to 325,000 million euros as of December 2009 was 96.824 million in bad loans. The president of the Chambers regretted that the Spanish financial system did not admit the impact of the crisis on their assets, as well as the Bank of Spain, which affirmed that it was the responsibility of the whole financial sector: "In Spain, it was never wanted to recognize that the financial system was not in good shape, as this would have forced the banking sector to start re-capitalising policies. The goal of the state's policy has so far been to gain time, to start a mild bank recapitalisation, but time is now running out ".
See also 
- La burbuja inmobiliario-financiera en la coyuntura económica reciente (1985-1995). ISBN 978-84-323-0913-7.
- La otra burbuja inmobiliaria - El País
- Estrategias para combatir el encarecimiento de la vivienda en España. ¿Construir más o intervenir en el parque existente? - University of Barcelona
- Mapa de la sobrevaloración de la vivienda en España - Invertia
- Precios históricos vivienda España - Ecobolsa
- La depresión industrial augura el fin de la burbuja en el sector servicios - Libertad Digital
- La burbuja inmobiliaria ha inflado el precio de las viviendas un 40 por ciento - El Imparcial
- Los precios de la vivienda y la burbuja inmobiliaria en España - Instituto Juan de Mariana
- En los últimos 17 años el precio de la vivienda en España se ha multiplicado por cinco - Consumer
- "Recent history of the Spanish residential property market". Global Property Guide.
- Hogan, Caelainn (14 November 2011). The Irish Times http://www.irishtimes.com/newspaper/world/2011/1114/1224307526614.html
|url=missing title (help).
- El tsunami urbanizador, pág 24 y sig.
- Spain's Booming Housing Market And The Uncertain Future
- Diario El Mundo: El pago de deudas se 'comió' en 2006 todo el nuevo ahorro de las familias españolas.
- Año 2003: el Banco de España alerta..., Año 2004: el Banco de España alerta..., Año 2006: el Banco de España alerta...
- El Periódico de Aragón.
- Alerta del Banco de España a las contructoras.
- La deuda del ladrillo castigará a la banca, según las Cámaras de Comercio · ELPAÍS.com
- Gómez Navarro cree que los bancos pueden "quedarse" con el dinero del ICO | Intereconomía
- http://www.fomento.gob.es/BE2/?nivel=2&orden=35000000 Statistics from the Spanish ministry of development