One reason so many property investors lost their deposits and off-plan stage payments in Spain after the last boom was because consumer protection laws turned out to be toothless. Another reason was the scale of the building boom itself, which was off the charts. The boom was so out of control I believe it would have collapsed anyway, but the worldwide financial crisis of 2008 made sure there was no hope of a soft landing. The crash was so dramatic it swept away almost the entire Spanish home building industry in a tsunami of business failures. If the crash hadn’t been so dramatic, fewer foreign buyers would have lost their deposits. So what factors inflated this boom that teed-up so many problems for off-plan investors?
Source:: Spanish Property Insight