Catalan independence drive – implications for house prices

[Mark Stücklin]

I’ve argued recently in the blog that Catalan independence would drive down house prices in both Spain and Catalonia, leaving both countries poorer. However, I also see no chance of any Government in Madrid ever allowing Catalonia to go its own way – that would be electoral suicide in Madrid.

The uncertainty the process throws up is bound to be deterring some investors, and I’ve even had house-hunters, not just big funds, expressing concern and doubts. There’s a new article worth reading on this subject at Business Week saying that big investors are basically shrugging off worries about independence, but I wonder how long that will go on….

http://www.businessweek.com/news/2014-11-17/catalonia-s-independence-push-risks-real-estate-revival

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