Spanish Real Estate Bubble

The Spanish real estate bubble refers to a period when property prices in Spain rapidly increased due to high demand, easy credit, and speculative buying, far beyond their true economic value. This unsustainable growth was driven by optimistic expectations and risky lending practices. Eventually, when the market couldn’t sustain the inflated prices, demand collapsed, leading to a sharp decline in property values, widespread financial distress, and economic repercussions. This bubble burst contributed to Spain’s broader financial crisis around 2008, highlighting how excessive speculation and unchecked credit can destabilize the housing market and economy.