Surprise turn in Spanish property market

16/04/2011

 

Surprise turn in Spanish property market
Not only did the Spanish Ministry of Housing recently report a growth of nearly 6% in property transactions, the latest report from the Bank of Spain actually showed an increase in foreign investment in the Spanish property market of 2.9% last year. Not only that but the data showed the largest increase to be in the final three months of 2010, prompting market observers to suggest growth could continue throughout 2011 – the report states that ‘Q4 showed the highest year on year improvements suggesting a progressive change moving into 2011’.
We are all aware of the trials and tribulations the Spanish property market has undergone, especially since 2008. Developers were previously building at an astonishing rate and property was selling quickly, and in large numbers, to foreign investors - particularly from Britain. The oversupply of property in Spain - at one point in the 1990s the Spanish market was building more properties that France, Italy and Germany combined –began to cause problems by 2007 and by 2008 the market crash had begun.
When the property bubble burst it hit Spain more severely that some other countries, largely because their market was doing so well to start with and therefore they took a huge hit when the credit crunch spread through Europe.
It is good to see now that the market is recovering and growing once more. British people will always be attracted to Spanish property due to not only the property deals on offer but also the appeal of living in Spain with its warm climate, sandy beaches, appealing cuisine and cultural sights. Spain is now looking good once more - to discuss any of the Spanish properties we handle at Emerging Real Estate, please get in touch.

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