Author(s)

J.L. MIRALLES I GARCIA

Abstract

The period between 1997 and 2007 was a period of economic expansion in Europe, and especially in Spain, where it was based on the real-estate bubble. Valencian Country, in Mediterranean coast, is a special case inside Spain because its economy specialized in the housing construction sector for non-primary houses. House construction was possible due to the increase in private debt of developers and buyers. The (artificially self-generated) expectation of strong annual increases in housing values maintained an intense construction activity. In 2007, the price of houses peaked and then began a process of impoverishment due to the payment of debts. Today this process is still continuing, but extensive data on the complete cycle of expansion and regression of the housing bubble are already available. This paper presents a real description of the complete process of non-sustainable urban development in Valencian Country and analyzes the process in economic, social and environmental terms. Finally, a general scheme of the process and a system of sustainability is proposed.

Keywords

Housing market, property rights, real-estate bubble, sustainable urban development