Advances in Management and Applied Economics

Consequences of the great crisis in the economic situation and in housing prices: the case of the Basque Autonomous Community

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• Abstract 

  In this work it will be studied the consequences of the great crisis in the economy and in housing prices in the Basque Autonomous Community (BAC) in Spain. The economic situation that this region has lived during the decade between 2007 and 2017 will be analyzed with the variables Gross Domestic Product and Unemployment Rate. Afterwards, the housing market in the Basque Autonomous Community will be analyzed with the help of the variable Price of Housing for Sale per m2. As main results, it can be said that the global economic crisis has severely affected the economy in the BAC, reaching the highest unemployment rate and the highest free housing price in its history. The same did not happen with the prices of the houses from official protection, which increased during the period. This fact evidences the need for different policies for the two types of housing studied. Fortunately, the crisis is lagging behind and both the economy and housing prices are recovering in recent times.

  JEL classification numbers: 010, 018.
  Keywords: great crisis, housing prices, economic situation.