Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Hacienda Riquelme golf course and surroundings in decline › Re: Re: Hacienda Riquelme golf course and surroundings in declin
Most Spanish communities and especially the former Polaris World communities are going through hard times at the moment. A combination of over borrowing, debt and unrealistic planning together with the fact that in a small region of Murcia in the last nine years were built at least fifteen golf courses with residential property and a useless, unnecessary unused airport.
Murcia is a permanently drought stricken region of Spain and an official semi desert and not a particularly attractive region for tourism at that. Where the water was coming from at an affordable cost to irrigate golf courses and tourist resorts on this scale was never considered. It was the greed of the boom and now we have the inevitable bust years which will run on and on.
Some years ago I actually carried out a study on these resorts long term feasibility. I was at the time considering a large investment. I arrived at the conclusion they were an unmitigated financial disaster which would end in being an enormous financial burden on any investment that was made, even at reduced prices with little or no significant return.
Resident management committees struggle to keep these places going in the teeth of ever rising costs and community debt. The courses are now run by a conglomerate of four disaster banks. Their market capital descends ever lower into the abyss as right downs on capital security are reduced by the market and the Bank of Spain. The banks themselves are kept afloat with bail out loans provided by the EU and will struggle for at least a decade.
It’s unfair and wrong to blame anyone but the corrupt developers, bankers and politicians who have damaged Spain in the last ten years and brought the country almost to it’s knees.