Real Estate BubbleTEAM 3

PROJECT 2

Introduction What’s a Real Estate Bubble? How did the Spanish housing

bubble take place? How is Spain after the housing

bubble?

What’s a Real Estate Bubble?

PRICES INCREASE

DEMAND INCREASES

OFFER RISE

PRICES DECREASE

THE BUBBLE BURST

How did the Spanish housing bubble take

place? “Law on Ground”

The plan was to increase the offer in the real estate sector by booming the number of investments and, therefore, allow the Spanish youth to access ownership easily and for a fair price as the cost was supposed to be lowered significantly thanks to a large offer.

Between 1998 and 2002. By 2005.

As a result, Spain unemployment dropped to an all-time low – 9,2% in 2005 compared to 22,9% in 1995

BUT…

The “ley del suelo” didn´t have the effect predicted

The price of housing rose disproportionately from the date 1998

more frozen than Walt Disney

While house prices rose more than double, the Spaniards continued to earn the same

salary

pricePrice Price

Salary SalaryThey were frozen more than Walt Disney

How can people continue to buy houses?

Thanks to your friend, the Bank

Mortgages could be comfortably paid in 40

years

With the rest of the money you can buy

more things

And so you with a very bad salary, and you could live very

well

Give loans to the so-called ninjas

Reduce the conditions for the granting of mortgage loans

consequences

origin cause effect

We had found out suddenly that we all are poor and what is worse

we have never ceased to be

and finally

What happens in Spain after the housing bubble

effects? Spain's economy started to recover in

2014, with GDP (Real gross domestic product) expanding by 1.4%, according to the International Monetary Fund (IMF)

In the first quarter of 2016, the economy advanced 0.8%. Despite political uncertainty after an inconclusive general elections

How is Spain after the housing bubble?

The main aspects to analyze in Spain after the housing crisis are:

Price of housing and rents Unemployment Reaction of the principal Spanish

financial institutions

Price of housing and rentsSpain after almost seven years of falling house prices, Spain's housing market is recovering.Spanish house prices fell by a total of 41.4%  from 2007 to 2015

During the year to end-Quarter 12016, Spanish house prices Rose by 6.34%

How is Spain after the housing bubble?

UnemploymentSpanish unemployment now stands at 21% in 2016, down from 23.8% in 2015 and 25.9% in 2014, according to the INE(Instituto Nacional de Estadística). Despite this,Spain's unemployment is still the second highest in the OECD(Organisation for Economic Co-operation and Development), next to Greece

How is Spain after the housing bubble?

Reaction of the principal Spanish financial institutions

After the real-estate bubble the principal Spanish financial institutions have many real estate of the clients. The solutionof the financial institutions has been to create real-estate agencies

How is Spain after the housing bubble?

BIBLIOGRAPHY http

://www.investopedia.com/terms/b/bubble.asp

http://suitelife.com/blog/barcelona-real-estate/economy-of-spain-housing-bubble-2007/

http://www.spanishpropertyinsight.com/2009/04/29/spanish-housing-market-bubble-and-bust-explained/

http://www.globalpropertyguide.com/Europe/Spain/Price-History

https://www.youtube.com/watch?v=InfvncOn6_Ub

Thanks for your attention.

Ana Karolina Meza GonzálezJessica Morales Fernández

Maxerco Morales MartínJose Alberto López Da Silva