The eurozone debt crisis has left British construction firm Taylor Wimpey (Dusseldorf: 408518.DU - news) as the last homebuilder still actively developing on the Spanish island of Majorca.
Competition on the island has been destroyed by Spain’s economic and financial turmoil. The eurozone’s fourth biggest economy is poised to enter a second recession and more than half of its youth are out of work.
In a graphic illustration of how the problems are reverberating through its economy, the builder has seen other developers operating on the island the bulk of which are Spanish either go bust, into the control of their banks or simply find themselves unable to afford to build because of financing problems.
Taylor Wimpey, whose Spanish operation represents a small fraction of its business, says that it has been left the only developer currently active on the island, working across some seven or so sites at a time.
At recent peaks, developers were working across up to 40 sites.
Those who buy are often ex-pat retirees who are unwilling to wait for a resolution of the eurozone crisis to pursue their dreams.
“If you always planned to retire to Majorca at 60, you don’t necessarily want to wait another five years until things pick up to buy,” said Pete Redfern, chief executive at the housebuilder.
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