Unemployment concerns slowing Spanish property market
By James Roberts

Unemployment concerns slowing Spanish property market

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Concerns over unemployment in Spain have been cited as the reason for declining house sales in the country during November, Bloomberg has reported.

Transactions declined by 6.2 per cent compared to the previous year making it the third consecutive month that sales have fallen.

According to the news provider, the sudden drop in sales also comes as banks slow down their levels of mortgage lending, with many individuals holding off buying a home in Spain until the outlook for employment improves.

"Spain's economy stagnated in the third quarter, leaving the unemployment rate at more than 20 per cent, the highest in Europe," the article stated.

However, the overall economic recovery may be further destabilized by the introduction of the most stringent austerity measures in around 30 years as the government in the country looks to cut its deficit.

Since the market's peak in 2007, a recent survey from real-estate website Fotocasa.es and IESE Business School has found that prices have fallen by 22.5 per cent.

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