Spain, together with France, has one of the most restrictive, sclerotic and corrupt economies in the EU. I would not be at all surprised to see 18% unemployment and a recession caused by falling construction of new apartments – in Spain. I some how don’t think the majority of buyers of 2 bed apartments and seaside villas are Spanish, though.
Will the UK or most of other ‘buying’ economies see anything like that? Don’t think so. Will interest rates of 4, 5 or 6% put people off? Sure. Will it cause a slump? Don’t think so.
But let us know when one of your clients has sold a villa or apartment for 40% less than they paid.