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Economic devaluation of real estate on the Mar Menor

Posted by Tania on 16/11/2021
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The economic devaluation of real estate on the Mar Menor

Source: La Verdad – 6 Nov 2021 and Bank of Spain

The economic decline of the Mar Menor: an ecological disaster resulting in a loss of value of 4,150 million euros for local real estate.

“A property on the Costa Blanca South has increased in value by 45% over the past six years than a similar house near the Mar Menor,” warns the Bank of Spain.

A study by the Bank of Spain estimates that the average return on investment on the Mar Menor has been zero since 2015, 45% lower than in the south of Alicante.

The Mar Menor region has been going through an unprecedented environmental crisis for years, which is already starting to affect the area’s economy. Starting with the real estate market.

The Bank of Spain concludes that environmental degradation in the vicinity of Europe’s largest saltwater lagoon, the Mar Menor, has led to a loss of value of properties in the area.

The decline in value started in 2016 and coincided with the first of the major ecological crises that have hit this natural environment with the appearance of thousands of dead fish on the shore.

The Bank of Spain also warns of the impact on the mortgage market: “The results suggest that an environmental deterioration as described has the potential to significantly reduce the value of the property, making it difficult to access credit in the affected areas. areas”.

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