Real Estate Crisis Threatens Spanish Economy

Rising property values lured many Spaniards into the real estate market but the bubble has burst and the crisis is quickly spreading through the country's economy

"I'll give you a good price," the man, who introduces himself on the phone as José, promises potential buyers. José has a flat in Seseña, a small town of 12,000 around 40 minutes by car from Madrid. Now, he wants to get rid of it—regardless of the financial hit he might take. The real estate agent who sold him the property insisted it was a safe investment for the future. But those promises dissolved into thin air not long after José had signed the contract.

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