The collapse of Spain’s booming housing market has left unfinished, unoccupied towns across the country.
Each failed development represents a loss for the banking sector, which admits to $240 billion of problematic exposure and is probably exposed to more. As home prices keep falling and unemployment soars, banks will face further writedowns.
But they are just the tip of the iceberg. Rafael Valderrábano, director of Basico Homes in Madrid, told us “more than ghost towns, the real problem is the large numbers of small ghost villages surrounding big cities.”
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