Spanish Government Plans to Create 20,000 Public Sector Jobs Across Next Two Years

Spanish Government Plans to Create 20,000 Public Sector Jobs Across Next Two Years 

creating more jobs can only be good for everyone 

The Spanish government has pledged to create 20,000 additional public sector jobs leading up to 2019. The move is part of an effort to provide the official authorities and services of the country with more support. 

The El Mundo newspaper is reporting that 7,000 of these jobs will be for general state administrations, along with another 3,360 positions opening for the judiciary.

4,000 jobs will go to the Spanish civil service, social security, and tax authority institutions as Madrid is looking to boost the ability of the government in key areas. 

It’s expected that many of these prospective roles will be announced – and potentially filled – by the end of the year. If this is the case, it would be one of the most powerful recruitment drives ever by a Spanish government. The vice president of CSI-F – the majority union in the Central State Administration – spoke to El Pais; saying that the plan looks to ensure the viability of the administration which has seen young staff decimated in the past six years. 

The official data shows that only 1,388 of the 190,858 public sector workers in Spain are under 30 years old. This statistic shows not only how public sector roles have been the domain of the old and connected Spaniard, but also the need for a fresh young mindset and new ideas. 

This doesn’t help that absolutely zero public sector roles have been created in the country since 2010. Spain has been dealing with austerity since 2010, but the current economy is holding strong and prospects are good, giving the government the freedom to bolster the public sector while they can.

Spanish Manufacturing Growing at Highest Rate for 19 Years

Spanish Manufacturing Growing at Highest Rate for 19 Years

Spain continues to grow on all fronts.

Jobs are being created in the Spanish manufacturing sector at their highest rate since 1998, with data from economists showing the Purchasing Managers’ Index (PMI) of the country rose faster than anticipated; hitting highs of 55.4 in May.

The PMI measures the general health of a country’s manufacturing sector. It is determined by the amount of new orders, delivery times, production output, and employment figures.

A ranking of 50 indicates there has been growth over the past month. Analysts suggest that the performance in May was the strongest so far this decade and a great sign that the Spanish economy is gearing up to improve its GDP over last year.

While employment in Spain sits at one of the highest levels in Europe – 17.8% - it has improved the most in the Eurozone over the past 12 months.

The senior economist of IHS Markit Andrew Harker remarked that May was a great month for the Spanish manufacturing sector. Firms were bringing in staff at the highest pace they had for 19 years. Harker expects that job growth will continue for the short-term at the very least as new work continues to open up and the market continues to prove it can handle pressure.

Tourism, real estate, and agriculture are typically the strongest areas of the Spanish economy. Ever since the double-dip recession however, the nation’s employment laws have been liberated somewhat, opening up jobs in the manufacturing sector as more and more companies choose to invest in Spanish workers.

It’s not all good news however; job security and wages have shrunk somewhat recently. The good news is Prime Minister Mariano Rajoy has promised he will address these issues in the near future.

Over €2 Billion Invested Into Spain Through Golden Visa Scheme in Three Years

Over €2 Billion Invested Into Spain Through Golden Visa Scheme in Three Years

The introduction of the Golden Visa has been very sucessful

The Golden Visa in Spain – introduced to attract wealthy non-EU investors to the country in 2013 – has generated €2.16 billion for the country in a little over three years, according to the latest official government data.

Around 27,301 residency permits were granted by the government following the 2013 introduction of the Golden Visa.

The Golden Visa gives individuals and their families residence in Spain in return for them investing large sums of money. The minimum investment depends on the form of investment; including a minimum of €2 million invested in treasury bonds, €1 million in deposits or stocks, or a minimum of €500,000 in the Spanish property industry.

It won’t come as much surprise that the majority of the investments were made in real estate – both in residential and commercial property – as 72% of the €2.16 billion generated by the scheme went to the property market.

As far as the actual number of Golden Visas go, there have only been 12,891 issued. The amount of residency permits is much higher, as the wealthy individuals getting Golden Visas also secured residency for their families.

In terms of nationality, the Chinese and the Russians are the main ones taking advantage of Golden Visas, with 60% of all investors coming from these two nations.

China was ahead of the pack with 714 Chinese nationals getting their hands on Golden Visas since they were introduced. Some €716 million was invested by Chinese nationals in Spanish property, business ventures, and financial assets.

Russians invested €567 million themselves, for a total of 685 Golden Visas.

It took a while for the Golden Visa system to really get started. Only 530 took Spain up on their offer during the first year. The Spanish government made the Golden Visa more attractive in 2015 by allowing for direct family members – such as spouses, children, and elderly relatives – to be included on the visa. The residency period allowed by the visa was also extended to 5 years, up from 2.

The data from the Spanish government shows that over 1,700properties were purchased under Golden Visas. Around half of these (893) were purchased in Barcelona, with 348 purchased in the Malaga province; home of the Costa del Sol.

Data Forecasts Spanish Unemployment Drops Below 17% for First Time in Years

Data Forecasts Spanish Unemployment Drops Below 17% for First Time in Years

Its official when the economy is moving in the right

direction unemployment drops drastically

Spain saw unemployment soar to the record rate of 27% in 2013, but is now looking at ending 2017 with less than 17% unemployment for the first time in years.

While there is still the myth that the Spanish economy is still stagnant, official figures from government and European bodies show that Spain has been one of the strongest economic performers in the continent for the past 18 months now.

While 17% unemployment could still be considered pretty high, in relative terms it means Spain is on course for another year of strong economic growth. The rate of unemployment fell to 18.6% in 2016, and it’s predicted that it could fall another 2% during 2017; which would mean over half a million more people in work.

This was the message spread by the Spanish Economic Minister Luis de Guindos last week. The Economic Minister admitted that the unemployment rate in the country was still inadequate, but was still very bullish overall on the long-term prospects.

Economic growth topped 3.2% GDP in 2016, with similar levels of growth expected for this year, and a further +2.5% growth expected for the next four years. The queues in the job centre are getting shorter, and thousands of educated Spanish youth are returning from Germany, the UK, and wherever else they have been, creating what economists feel is more of an opportunity than a burden.

Youth unemployment in Spain is still one of the highest in Europe, reaching over 25%, but there has been plenty of recovery in other industries; evident by the rising number of Spaniards being issued with mortgages. This has left the Spanish youth more confident about their chances of securing a bright future in their home country.

Spanish Home Values Rise 10% in Three Years

Spanish Home Values Rise 10% in Three Years

The latest data from the National Statistics Institute (INE) about the Spanish real estate market shows average home values have increased 10.8% in Spain during the past three years.

The property market is on the rise, take a viewing trip

with Costa Del Sol Property Group

In just 2016, the housing price index in Spain showed that house prices were up 4% by the end of the third quarter over the same period of time in 2015. As such house prices have increased by an average of 4% each year since 2014, which is when they bottomed out.

The increase in house prices in Spain is both a driving factor for – and a result of – the increased amount of interest in buying and selling Spanish property. Growth was stunted during the recession between 2007 and 2014, which eliminated confidence in the industry. Spain has since come out on the other end of these dark times.

Many of these transactions are due to an increase in foreign demand for Spanish property, which was still there for the recession. The data from the INE also suggests that there is another positive trend developing in the form of housing starts; people buying their first homes.

This figure rose above 60,000 during 2016, and it’s expected that some 67,000 first homes will be bought in 2017. The housing market right now is a perfect cocktail for the first buy market; the economy is stronger, there’s more job security, better mortgages, and a growing but affordable property market. There’s never been a better time for property investment.

New housing starts grew 32% in 2016 compared to 2015. The result is that only 17.5% of young Spaniards are currently living in rented accommodations.

It’s becoming tougher to find rented accommodation in Spain. Spain has the fewest amount of homes for rent in the entirety of Western Europe, with only 2% of accommodations in Spain up for rent.

Spain Reining in the Russians Once Again After Lean Years

Spain Reining in the Russians Once Again After Lean Years

Russian tourism is important to Spain and many

are taking advantage of the Golden Visa system

The roubles are coming back to Spain after the Association of Tour Operators of Russia (ATOR) confirmed that Russia has moved their on-off relationship with Spain back to the “on” position.

Following the boon to the Russian economy a few years ago, many of the newly-minted middle class of the country started heading further west than they usually did, moving from the Black Sea Coast to the Mediterranean.

After taking in the Mediterranean and Aegean Seas they decided that Spain was the place for them, with tourism peaking in 2014 shortly before the Russian economy collapsed once again following the massive dip in oil prices.

During the next two years it became difficult for Russians to go further afield for their vacations following wage cuts and a bad exchange rate, but things could be once again on the mend.

ATOR say that some 3.3% more Russian tourists visited Spain in 2016 over 2015. While it is still over a third less than the record 883,000 tourists of 2014, it’s still representative of a nice turnaround in the economies of both Spain and Russia.

ATOR said that between January and September of 2016 Spain was the most popular travel destination for travellers from Russia.

Greece was the most popular Russian tourist destination for a brief time in 2014, with over one million Russians heading to the country during the first nine months of 2014. Russians stayed away from the country following the Greek economic crisis and now Spain has moved ahead of Turkey, Thailand and Cyprus to be number one again.

As far as expenditure for guests goes Russians have always been generous to their Spanish hosts and will spend an average of €104 per head, which is about how much your average British tourist spends.

Spanish resorts will no doubt be revelling in the roubles but there has been extra data from the National Statistics Institute (INE) showing that there’s very little for Spain to worry about as far as attracting foreign visitors goes. The amount of visitors up to October was up 11% year-on year with foreigners spending almost €70 million euros during the first ten months of 2016; an increase of 16.3%. So Spain is bringing in more tourists and these tourists are spending more money.

21% of all the foreign expenditure in Spain for 2016 came from Brits, with Germans coming in second at 17.1%.

Spanish Property Prices Predicted to Rise Over Next Four Years

Spanish Property Prices Predicted to Rise Over Next Four Years

Great news as the recovery continues, and the Costa Del Sol

is the place to buy

Acuña & Asociados recently did a statistical analysis of the Spanish property market that forecasted steady rises in property prices through 2020, with an average increase of 5% occurring from 2018.

The report, which is the 20^th such annual assessment of the Spanish real estate market by the firm, suggests that average property prices will have increased by 2.3% between the start o the year and the end. The trend will then carry over into 2017 as average values increase by up to 5% by 2018, and could potentially rise even higher in 2019 and 2020.

Of course it’s not easy to predict how the Spanish property market will behave across four years, but if you take a look at 2014 you’ll see there is evidence of a trend. Since leaving the recession the property market in Spain has grown alongside the economy and job market.

Property prices in Spain tend to be cyclical, which would suggest that the upward trajectory currently being enjoyed could last few at least the next few years. Given the gradual nature of the recovery it’s less likely that the bubble will burst in 2020. Instead it’s likely that the prices could flatline, or just grow at a slower rate.

It’s impossible to say what will happen for sure, but the Acuña & Asociados experts have made their own educated guess and expect that there will be much more stability in the years between 2016 and 2020 than was seen in the years between 2008 and 2012.

The analysts also expect that this market development will lead to greater investment in new build property, as the stock of new housing in the most popular areas of Spain has become exhausted. Around 82,000 properties were built in 2016, and there is likely going to be more built over the next few years.

More data came from the property figures for October from Spain’s Notaries. The latest data suggests that the average price per square metre of property in October rose 1.5% over last October to €1,275. The average loan was also on the up, rising 0.9% to €125,138, which suggests that mortgage lenders are becoming more generous as the conditions continue to improve.

Property Sales in Spain Reach Second-Highest For Five Years During Third Quarter

Property Sales in Spain Reach Second-Highest For Five Years During Third Quarter

The Costa del Sol and Spain continue its property recovery

The latest data from the Spanish property registrar shows that a total of 103,055 homes traded hands in Spain between July and the end of September; representing the second-best quarterly performance in Spain for five years.

When compared to the third quarter of 2015 there were 11.1% more homes sold in the third quarter of 2016 as the property market became more active during 2016.

The third quarter was also up 4.4% over the second quarter of 2016 and showed the trend of each quarter being stronger than the last has continued since it began in 2010.

When you look at the 12 months leading to September there were 394,000 homes sold in Spain overall. This is an increase of 13.2% over the previous 12 months. 2015 itself was also a continuation of the growth the market saw in 2014, which is when the property market began to recover from years of contraction.

To look back even further shows that the amount of homes sold throughout Spain in the third quarter is the second-best quarter for five years; beaten out only by the fourth quarter of 2011 in which there was a mass fire sale of distressed properties.

Many experts expect that this upward trend will continue on into 2017 and the years after; thanks to the economic recovery of Spain and the consistent appeal the country has for being a premier destination for going on holiday and purchasing property to the people of Europe and the world as a whole.

Not everyone was feeling the positivity however as the data showed that the average price for property sold in the third quarter was 1.4% the average price from the second quarter.

Experts explained away the shrinking average price – prices in Spain have been increasing for around 18 months now – saying that it was mostly due to a shrinking number of new build homes being sold. New build homes are usually more expensive than a resale home and so they can provide the average sale price with a healthy boost.

The data from the registrar shows that only 17.1% of the homes sold in the third quarter were new builds, which was down from the 21% from the quarter before.

Even though there was a small fall in the average property price your average home in Spain is still being sold for around 3.3% more than it was this time in 2015.

Spain Set for at Least Two More Years of Affordable Mortgages

Spain Set for at Least Two More Years of Affordable Mortgages

Right now fixed rate mortgages are very affordable in Spain and it’s expected that things will stay this way for the next two years at least.

Getting hold of a mortgage has never been easier

Experts are predicting that, despite the uncertainty in the Eurozone right now the low interest rates that have helped to beef up the Spanish mortgage sector will be continuing for at least two more years.

These low mortgage rates have been a major factor in the recovery and resurgence of investing in the Spanish property market in the past 24 months. Spain is set to continue using the fixed rate mortgage levels that are offered by the Euribor; the Euro Interbank Offered Rate.

The Euribor is used as a safety valve for property sectors across Europe as it sets an average rate of interest payments amongst the Eurozone based on how an economy is currently performing. The European Central Bank has been scared by some of the recent financial blips in Europe and it’s expected that the Euribor rate will be kept below zero for the next two years at least until 2019.

Many Spanish mortgages are lent on the Euribor rate, which dipped down to -0.057% in September. This was also the eighth month in a row that the rate was negative. Normally these low interest rates would only be used on a shorter term basis and are used in an attempt to stimulate the national market.

Now the Spanish property market is expected to see the benefits of a low interest rate much like the German export-based economy received a healthy boost across two years from the low euro. The Spanish property market has become one of the most popular property markets across all of Europe. There are plenty of foreign buyers, particularly British buyers, who are now being offered great terms for purchasing a home in Spain.

It’s expected that the Euribor could go down even further and could reach even -1% in 2018, which would mean that mortgage repayments are even lower and the Spanish property market is even more interesting to investors.

There is some cause for concern from Spanish banks however. While it’s always good for banks to welcome more mortgage customers it could damage their long-term profitability, which could mean they tighten their belts when it comes to lending in a few years.

The Spanish banking sector and the real estate sector have been closely intertwined over recent years though so sensible banks are expected to maintain a watchful eye on the market and help it grow steadily rather than exploding and burning out. The good news for those banks is that “steady growth” is how the Spanish property market has been growing since 2014.

Spanish Unemployment Drops at Highest Rate in 20 Years

Spanish Unemployment Drops at Highest Rate in 20 Years

Even though two-thirds of the jobs that were created in June were temporary positions, more and more open-ended jobs are being created.

Spanish unemployment is slowly turning a corner

Spain always sees a boom in jobs during the summer and this boom was bigger than ever with data showing the country welcomed 84,000 new employees to social security in June; representing the biggest single fall in unemployment the country has seen since 1997.

The Employment Ministry confirmed that 83,993 people registered with the state employment offices at the beginning of July. The current official unemployment figures now stand at 3.68 million in Spain.

Going on a month-by-month basis July saw 84,721 more people added to the payroll than in June. When you compare it to figures from last year there are 3% more people working this July than last July. Spain currently has 17.8 million people contributing to social security.

Many of these new jobs (around 51,000) were created in the hotel and catering sectors. This is confirmation of the trend that the reason Spain’s economy does so well during summer is because of the long summer tourism season. While many of these jobs are often temporary current trends suggest that many of these “summer jobs” could last longer and some may even become permanent positions.

Spanish daily El País are reporting that 7.6% of the new contracts signed in July, which is about 1.81 million, were open-ended. This means that the positions the contracts are for could last longer than the summer season. This might sound like a small figure but it is representative of a growing confidence in the hospitality sector; a confidence reinforced by the record number of tourists, higher spending per head, and the recovering economies of both Spain and Europe as a whole.

Marcel Jensen, an economy professor with the Autónoma University of Madrid said that the figures show how strongly the Spanish economy is doing right now and the cost of living in Spain is being kept low. More people are being employed each quarter. Marcel did warn that reforms would be needed to maintain this success in the long term though.

Such reforms, which have been introduced in the past few years to liberalise the employment sector of Spain, appear to have done a good job of boosting employment. Even so analysts and financial experts believe that the growth Spain has seen for the past two years will slow down within the next two years.

Spanish Homes Sold at Highest Volume in Five Years

Spanish Homes Sold at Highest Volume in Five Years

The Economic Ministry published new figures last week that show the amount of Spanish homes sold in June was higher than for the past five years.

Spain is defiantly back and investor are buying

The data shows that some 36,856 property transactions were registered in Spain during June. This was a 19.4% increase on June of last year and is the most homes sold in a single month since August of 2010. The figure also shows that there are 100 sales per 100,000 inhabitants of purchasing age; a threshold that has always been seen as the mark of a strong property sector.

Sales were on the up in 15 of the 17 autonomous communities of Spain during the month. The only communities that failed to report an increase were Navarra and La Rioja. June also can’t be considered a blip on the radar. For the year-to-date the average number of monthly transactions has increased by 16.4% compared to last year. Even taking the trend to the full past 12 months shows an encouraging increase of 14.7%.

The Spanish property market hasn’t seen such an increase in activity since August of 2011. It’s especially encouraging given that Spain is recovering from one of the worst recessions ever seen. Now though the Spanish economy is recovering and GDP is set to grow by over 2.7% this year and next year. Spain is also seeing a bumper summer season that is bound to brighten up those dark post-recession days and make them a thing of the past.

More encouraging data about the Spanish recovery and popularity came from the Airports Council International Europe (ACIS) this week. They found that the Malaga and Alicante airports are two of the fastest growing airports in Europe, seeing an increase in passenger numbers for the first half of 2016 of 14.6% and 16.1% respectively.

Elias Bendodo, the president of Turismo Costa del Sol said that the figures confirm what a great year the Costa is experiencing. Spain is seeing record numbers of tourists and are growing in the European market as a whole. If the first half of 2016 is anything to go by it looks the 2016 will be a record year for tourism in Spain.

Expert Predicts Next Five Years Will be Great for Spanish Property

Expert Predicts Next Five Years Will be Great for Spanish Property

According to one professor the outlook for the Spanish property market is great. The real estate expert said that now is the best time to purchase property in Spain. His confidence comes from all the data and trends that suggest the next five years will be truly great for the Spanish property market.

The future is still bright for property in Costa del Sol

The expert in question; the economics professor and director of the real estate programme at the University of Barcelona Gonzalo Bernardos is definitely in a good position to make such a claim about the health of the property market.

No doubt his words are going to be eaten up by the thousands of people who are considering buying property in Spain. His words will definitely be welcomed following the uncertainly of the Spanish property market after the Brexit, which threatened to undo all the good that went into the property market in recent years.

Bernardos believes that 2016 will be the first year in the five-year golden period of expansion; a period in which every property asset will grow in price. Mark Stucklin, a property insight expert, took Bernardos’ words to mean that Spanish property is definitely going to be a one-way bet for the next five years. People looking to invest in property would do well investing in the popular areas of Spain such as Barcelona, Madrid, Ibiza and Merbella, along with most of the Costa del Sol.

But just what is behind the confidence Bernardos feels? He also added that the low interest rates of Spain are helping make property there even more attractive and that the recent economic recovery is helping to create a perfect storm.

He says that the residential market in particular is becoming a refuge for investors once more and that a key part of this is the low interest rates. The low interest rates are helping to make monthly mortgage payments far more affordable than the average rental prices. With this expected five years of growth and better job security Bernardos believes that it makes sense for people to begin buying rather than renting.

Bernardos believes that the disastrous decade that was from 2006-2015 will be followed by five fantastic years of an excellent property growth from investors . The interest from investors, coupled with the strong economic growth, will see the end of the hangover and bring the real estate market to providence.

These are definitely decisive words. Bernardos is also confident that if another international economic shock happens it will be mitigated by an increase in spending in Spanish households and company investment with a focus on construction.

Bernardos even had some words for people who were worried that his words sounded as if they came from ten years ago. He assured those people that there will be no room for speculators in this new golden property market.

He added that even if speculative demand does make a reappearance it will be much lower than last time and that banks have learned their lesson and will not give people money to fuel their speculations.

Spanish Unemployment Falls at Fastest Rate in Ten Years

Spanish Unemployment Falls at Fastest Rate in Ten Years

The summer is helping to push unemployment down

Summer always brings with it a boost to Spanish employment. Millions of people flock to the country over the summer and that means more work needs to be done and more people are needed to do it.

This year the annual boost in employment has been the biggest the country has seen for a long time. Data from the Labour Ministry of Spain shows that unemployed dropped at the highest rate in ten years over June. This suggests that the economic recovery Spain has seen is staying strong.

Spain still has a bit of reputation for being a place without jobs for some of Europe. While there is still too much youth unemployment in general unemployment has continued to drop for the past few years.

The June figures show that jobless claims went down 124,349 that much. So now the total of unemployed people in Spain is roughly 3.76 million. Spain also saw almost 100,000 new social security registrations in June so now there are around 17,760,271 people employed in Spain; the highest for over seven years.

Most of these jobs were created by the bumper summer season. While some of these jobs are seasonal there are plenty of non-tourism related jobs. The El Pais newspaper shows nearly 40,000 people were hired in the hospitality trade in June, which may be classed as seasonal jobs. The retail sector saw nearly 28,000 new hires, with nearly 19,000 in administrative activities, 14,000 hired in manufacturing, and roughly 11,500 people hired in the construction sector.

No matter how you look at it Spanish industries are creating thousands of jobs a month which is great news for the economy and keeps the cost of living down in spain.

Spanish Property Prices Up At Highest Rate In Over Eight Years

Spanish Property Prices Up At Highest Rate In Over Eight Years

Spanish property prices were up 6.3% leading up to March 2016. Spain may have experienced some frantic campaigning in the lead-up to the general election last week, but the political situation caused by the December general election seems to not have affected the revival of the property market.

This was further evidenced after the national statistics unit published data showing that not only is the market growing, but property prices are also up by 6.3% in the 12 months leading to the 31^st of March 2016. This is the eighth year in a row that prices have risen following the six year year-by-year fall in prices since 2007.

It’s made better news because this rise is being seen in every Spanish region. 6.3% is only the nationwide average with some areas, such as Madrid, seeing higher rises. Madrid saw the highest rises of 9.7%, the Balearics saw a rise of 8.8%, Catalunya saw a rise of 8.6% and the Canaries saw a rise of 5.9%.

Prices were up 1.5% over the rise seen in the previous quarter. The regional variations were as varied as the regional variations in overall price rise. Prices in Madrid were up 2.9% over the last quarter with a rise of 2.1% in the Canaries, a rise of 1.5% in both the Balearics and Galicia. However there was a 0.2% drop in property prices in La Rioja and a 0.4% drop in Castilla-La Mancha.
One of the biggest rises was properties for sale in the Costa del Sol as it continues its recovery.

Spanish Property Selling at Fastest Rate in Five Years

Spanish Property Selling at Fastest Rate in Five Years

Spain is back as property sales are on the move

2015 saw over 400,000 homes sold in Spain. This was the most houses sold in a year since 2010 and an overall growth of 9.8% over 2014.

The Ministry of Development published data showing that there were 401,281 transactions in 2015. 114,000 of these transactions took place in the fourth quarter of the year suggesting that 2016 will be a strong year for the property market and may even see more records broken.

While this number is a lot less than the number from 2006, when an unsustainable 1,000,000 homes were sold, this is definitely a strong growth that should be more sustainable. The Spanish property market in the Costa del Sol is definitely on the road to recovery after the global economic crisis.

The signs show that, despite the political troubles Spain is going through, the property market should grow even more and experience a distinct shift in nature. In 2006 roughly half of the homes that were sold were second hand homes. However in the last quarter of 2015 this figure was almost 88%. This suggests that the market is stabilising organically rather than because we’re seeing more homes built on the backs of credit.

There are currently more new homes in Spain than the country needs, even after the three year slump between 2007 and 2010 when barely any new property was built. This reveals that the market is likely full of new property that won’t be sold, but has a healthy mix of supply and demand for resold properties.

This is one of the best signs of a healthy property market that is ready to grow at a steady pace and now is the time to buy property in the Costa del Sol.

Spanish Properties Selling At Fastest Rate For Five Years

Spanish Properties Selling At Fastest Rate For Five Years

Spain’s property market seems to be recovering, as evidenced by the 401,000 homes sold last year. These sales provided Spain with the most houses sold in a single year since 2010 and saw a growth in sales of just under 10% over last year.

Spain is back and properties are moving again

The Ministry of Development released figures last week showing that 401,281 transactions occurred last year. A huge 114,000 of those happened in the fourth and final quarter. This great performance at the end of the year suggests that the Spanish property sales should continue in to 2016 and lead to higher sales figures this year.

While this 400,000 figure isn’t as high as the peak that happened in 2006 when one million homes were sold, it’s still a good, strong step in the right direction. These figures are also more sustainable than the 2006 figures and represent the market returning to a good place.

Outside of the political uncertainty that Spain is going through there are still plenty of signs that this growth in the property market will continue in to 2016. Half of all the homes sold in 2006 were second-hand. During the last quarter of 2015 almost 88% of homes sold in Spain were resale property, showing that the property market is moving rather than being pushed by the construction boom.

There is still too much supply in Spain for property right now even after the period of 2007-2010 when most of the construction sites in Spain remained inactive. While this does suggest that there might be some unsellable new properties in the market, the demand for second hand home is as stable as the supply.

This does show that the property market is becoming healthier. Current signs show that the prices are set to steadily rise with interest growing at a sustained rate.

So the future for the Costa del Sol and why to buy property in Spain looks bright. Contact us today for all our latest offeres!