Eastern Europe

Slower growth in prices of virtually no impact on volumes construction, which even increased, reaching a record 800,000 units, surpassing the performance of Britain, France and Italy combined. According to Drew Houston, who has experience with these questions. Prices, which in the nineties seemed very attractive, being somewhere at the level Eastern Europe, then came close to the level of other countries of Old Europe, and the demand went down, reducing the amount of new buildings in 2007 to 640 thousand units. Meanwhile, the average price of housing in 10 years, from 1998 to 2008, increased by 187%. In 2008, the volume of new construction dreamed of 2.5 times, amounting to about 250 000 units to the same problems started with the implementation of already built homes. In I quarter of 2008, home sales in Spain fell by 31.8% compared with the same period of 2007 year. Builders were forced to reduce prices sometimes up to one third the cost, almost touching them closer to the price of real estate secondary market.

'Reinforced' market faltered in Spain, which primarily affected the construction companies. About declared bankruptcy 65 developers and real estate brokers have collapsed, including such 'whale' of the construction market, as Martinsa-Fadesa and Metrovacesa. The capitalization of 'bankrupt' is striking: the assets of Martinsa-Fadesa was estimated at 10,8 billion in debt to 5,2 billion, the debt amounted to 7,1 Metrovacesa billion debt Barcelona Promociones Habitat, as declared itself bankrupt, was 2.3 billion, much better things are in the largest developers in Spain, the company Acciona, Gomendio , Realia and Vallehermoso.