The housing bubble boom and burst in Ireland and Spain: an historical perspective

Abstract

In this work we will analyse the real state bubble, in the case of Spain and Ireland (Celtic Tiger). In the first place, we will explain the historical background of both countries. In the case of Spain, from the dictatorship of Primo de Rivera, Second Republic, Civil War, Franco’s Dictatorship, Transition and nowadays Democracy. In the case of Ireland, we will talk about the independence from Great Britain in1922 until nowadays. Therefore, we could observe the differences and similarities: political, historical, economic and cultural, among both countries. We will analyse Spanish and Irish real state bubble, using as indicators: the evolution of prices, the financial system, its financing, and supply and demand of houses. Once observed both countries real state bubbles, we will continue with its comparison. Finally, we will summarize the most relevant conclusions we have reach to about this topic.