Yes shakeel, spanish economics are strange…someone is interested in their house, increase the price. A restaurant is doing badly..increase the price!
As for the credit crunch…would it be that was Spain’s only problem! Spain has been in the doldrums since 2004 (the reason why some developments from that date still have units for sale). Agents were frantically talking up the market, now they are talking it down with “fantastic bargains” that don’t exist…yet! The credit crunch will exacerbate the markets crash but if it were not there a serious problem still exists.