Economic Factors In Spain

Spain boasts a very stable economic climate, making property investment an excellent option for those seeking a reliable return on investment in a location not too far from home.

The following economic factors make Spanish property a good option:

• Many investors have lost confidence in the Stock Market. They are disillusioned with their poorly performing pension and savings plans, PEPs and stock investments that continue to fall in value daily. Today, investors are searching for alternative opportunities that can give a satisfying return on their investment. Property offers substantially greater returns than any other form of investment.
• Despite price rises over the past ten years, Spain still offers value for money and excellent returns. Today the property market remains buoyant and there is little sign of change while the tourist industry supports this growth. Purchased in the right location, property remains the favourite form of investment.
• As the second most popular tourist destination in the world, tourism figures in Spain continue to rise each year. In 2005, it welcomed some 55.6 million tourists and the Spanish Ministry of Tourism predicts that by 2025, 3 million foreigners will have come to Spain to set up home, treble the figures of today.
• Property prices in many hotspot areas of Spain remain a good deal lower than those back home, allowing people to afford a holiday or second home, or indeed relocate to the country and retire early. Spain is also the number one destination (according to Atlas International) for young investors who are priced out to the property ladder in their home countries and use Spain as an investment vehicle to raise funds for a future purchase.
• Off-plan purchases are a popular investment option for those in the know. You can avoid the full cost of paying for the property by paying in installments and selling the property for a much higher price prior to project completion. Vast profits continue to be made with shrewd off-plan investment.
• The buy-to-let option in Spain is a highly lucrative one due to a thriving and ever expanding tourist industry. Get it right, and you could rent your property out for six months of the year to cover costs as well as have it for your own use, free of charge, for the rest of the year.
• Rising prices seem set to continue for the foreseeable future (in 2005 capital growth stood at average 13.4%), in both the popular coastal resorts as well as in easily accessible inland regions. Experts predict that prices will continue to rise, albeit at a slower pace than in recent years.
• In the popular tourist regions of the Costa del Sol and Costa Blanca, prices remain relatively high but, due to huge demand, they will hold their value and continue to steadily appreciate in value in the medium to long term.
• Buying in Spain is a well-trodden path: there is plenty of expert, readily available advice on the subject and provided you use a good, independent lawyer, your purchase should be trouble-free.
• With the increase in budget airlines and packages to Spain, as well as online accommodation bookings, property in Spain supports an ever present need amongst tourists for an economical destination where prices remain lower than back home.
• Spain offers investors a stable economy and solid returns on investment within a safe property investment market. Spain is less risky than other emerging markets by virtue of a mature, stable and growing economy that is already accustomed to foreign investment.
• Financing a property purchase is readily available in Spain. It is a well established system and offers low interest rates, which are attractive to property investors worldwide.

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