I remember the slump of the early 90s. Unemployment was just as high, tourism was heading down – at the time I heard many Brits claiming Spanish tourism was toast, they’d priced themselves out of the market etc etc. Yet things turned around in the second half of the decade..
Spain still holds a great appeal to tourists and people wanting a home under the sun and near the Med sea – you can see from the press article I linked to on the Press Articles thread that now Russians are coming in greater numbers.
Will people learn from the past property slump? Sadly I think people will make the same mistakes. Unless credit is more tightly controlled there will be another bubble in the future. Don’t get me wrong we have some time to go before the current situation is resolved. But even now I see people on different forums deciding to move to or retire to Spain. The appeal seems to be ever-lasting. Unless something drastic like a European war breaks out, there will always be people wanting to “live the dream” and move to Spain, even if the reality is different to their dream.