Martinsa Fadesa is insolvent
One of the Spains biggest developers, Martinsa Fadesa, has declared itself insolvent.Its blamed on the oversupply of properties and rising borrowing costs.
The group has been unable to refinance its debt and will now begin selling its assets to pay off creditors.
According to APCE, the association of Spanish property developers, house prices have fallen by 15% since September of last year.
In some regions over 50% of the new homes built in the past three years are unoccupied.
Meanwhile, Britons who have chosen to live in Spain during their retirement years continue to struggle with the fall in the value of sterling; the euro has risen 12% against sterling in the past year.
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