MEPs condemn Spain's 'building boom'

Members of the European Parliament (MEPs) have condemned unnecessary residential development schemes in Spain, particularly in Madrid and on the coast. The MEPs said some of these residential projects have 'no relation to the genuine needs of towns and villages,' go against 'environmental sustainability' and have a 'disastrous effect on the cultural and historic identity' of the locations. Spanish builders constructed 750,000 houses and apartments last year - more than France and Germany combined - while annual demand came to 60% of supply, according to the finance ministry.

This is not the first time that Spain's aggressive urbanism has been put under the spotlight. In May 2007, Spain's lower house of parliament approved new legislation aimed at curbing property speculation as well as increasing transparency in the housing sector. Housing minister Maria Antonia Trujillo said that the law will help Spain's residential property market 'land softly'. Property prices have risen by more than 150% over the past 10 years, driven by the real estate boom in the country. The legislation, set to come into force by 1 July, will introduce an obligation to allocate a 30% share of future residential property development for social housing. The law will also impose more stringent controls on projects which could increase a city's population by more than 20%.

The European Parliament also attacked the pressures that are allegedly being put on local owners to part with their properties. Scandals concerning corruption have called into question the activities of locally elected officials responsible for town planning.