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Spain Economy - Real estate Growth & Economic Indicators

Spain is the ninth largest world economy, and has been enjoying ten years of economic growth, bringing it closer into line with the EU economic powerhouses.

Spain Property Market

Rapid construction of new properties is helping to meet booming demand for holiday accommodation, particularly from British visitors. According to recent research on British lifestyles from Mintel, holidays are the number one priority for British adults over the next 12 months.

As many as one in four (23%) plan to go on a major foreign holiday, with 22% planning to go on a short break. Spain remains by far the most popular destination for sun-hungry Britons, with nearly a third of adults visiting Spain within a two year period (Source: Mintel, Holidays to Spain, 2005).

Prospective holidaymakers are advised to consider a property purchase in their chosen destination, combining a valuable buy-to-let investment with savings on holiday accommodation costs.

Spain is the ninth largest world economy, and has been enjoying ten years of economic growth, bringing it closer into line with the EU economic powerhouses.

Sustained annual growth in GDP has outperformed EU average growth, as well as that of the UK, France and Germany.

Dynamic Economy

With such a dynamic economy, Spain is attracting considerable inward investment. Investors are drawn to Spain both for its domestic economic performance, and for its access to Europe through membership of the EU and Eurozone.

The Eurozone offers an attractive mortgage market for borrowers, with a base rate of 4%, compared to 5.5% in the UK.

Spain - An Established Property Market

Goldman Sachs Global Capital and 3i are already based in Spain; Latham and Watkins is opening new offices in Barcelona and Madrid; and firms expected to move to Spain shortly include Dewey Ballantine, Shearman and Sterling, and White and Case.

The Spanish real estate market has seen sustained growth since 1993, with significant rises from 2001 to 2004.

Prices continue to rise, but with a slower growth rate – 15% in 2006 and 21% in 2007 compared to 2005 prices.

While there is the prospect of further slowdown in the rate of growth, the Spanish market offers real potential for ongoing returns.

Investors benefit from extensive historical data on this well-established marketplace when making investment decisions. Should any price fluctuation occur, investors who retain their property through a period of slowdown can still realize on their investment, when price growth resumes.