Yes that’s right. After a very tough and tumultuous number of years, Spain and Spanish property is once again bouncing back, according to many experts in the field of finance and economy. The best part is even amid recent events following Greece and the possible exit from the Euro Zone, growth is still very much apparent. According to data collected over the past several months, we can see a rise in several different areas which includes employment, business and especially Spanish real estate.
Experts in Spanish economy and Spanish property have been blowing the horn for over two years now – it may seem slow, but now we are in a major recovery. Property health is back a full optimal and we have foreign investors to thank for this. Property on the Costa del Sol, and especially Marbella properties have all seen a major influx in property buying. Of course taking advantage of the low Spanish property prices had everything to do with it. When you really take a step back and look at the entire picture, the property crash in effect almost gave us the kick we needed.
It’s safe to say the same mistakes won’t be happening anytime soon.
The Spanish Property & Spanish Economy Continues to Grow
A very strong expansion in the second quarter means the Spanish economy continues to grow faster than the UK at the moment, where output rose by 0.7pc in the second quarter and 0.4pc in the first three months of the year. Spain, and particularly the South of Spain is expanding at one of the fastest rates in Europe. Spain is also calling for wide political reform, which will be tantamount to how the country will perform in the future. According to last month’s Employment and Social Security Ministry report, unemployment in July this year fell for the sixth straight month by 74,028 to 4 million, the lowest since July 1998 and nearly three times the year-earlier level. The report showed that From May 2013 to May 2014 the number of people out of work in the country decreased by 318,543.
The recent figures in the construction and Spanish real estate sectors are showing the same results . Recent studies and collected data show us that the worst of the real estate crisis is behind us. Mark Stucklin of Spanish Property Insights tells us that the Spanish market bottomed out in 2014 and is back in recovery. The market has increased 14% year on year as a whole but by a huge 53% in the resale area, a very substantial increase.
The head of research at Idealista, Fernando Encinar, says;
“The two speed recovery is now a reality, and whilst some market segments have started to see modest price increases, in others owners still have to reduce their expectations in order to make a sale.”
In the UK the pound is incredibly strong against the euro, which only helps with the exchange of your property investment in Spain or the Costa del Sol. This of course makes it a more lucrative deal for the foreign buyer.
Alejandra Vanoli, managing director of Mallorca Sotheby’s International Realty says;
“The British pound is at a seven year high against the euro, a two million euro property would have cost £1.67 million a year ago, but just £1.44 million today, some 14% more affordable.”
With that in mind it is not hard to see why investors from the UK, Switzerland, Germany and United Arab Emirates are looking to Spain now to purchase properties on the Costa del Sol. It’s a fact now that current exchange rates are looking very positive as far as oversea buyers in particular are concerned.
This is combined with the brand new Golden Visa scheme which allows non EU nationals residency in Spain for purchasing property, under certain conditions. This law is clearly set out to attract entrepreneurs to Spain and therefore attract foreign investment in Spanish real estate and job creation, thus entering a new phase of recovery for the economy. Spain is really looking for unique and advantages ways of gaining momentum and becoming financially stable once again and on its own terms.
Now is the time to buy property in Spain.