Spain is one of the largest countries in Europe, not only from the factual but also from the financial point of view: its economy is larger than that of Greece, Ireland and Portugal combined. It is the fourth largest economy in the European Union. This is why the crisis that began in 2008 was a serious test for other countries as well. The key word was. And this is not an unsubstantiated statement – it is a conclusion that can be reached by studying key economic indicators, which are always ready to provide statistics. Today we will talk about why the Spanish crisis can be considered complete and why it is time to buy real estate in Spain.
Let’s look at the current figures of GDP, unemployment, the situation in the tourism industry – this concerns the general trends. And with regard to the real estate market will clearly illustrate the current state of affairs such parameters as the dynamics of mortgage lending, the volume of new construction, housing prices, participation in investment in housing of the Spaniards themselves. So you can already use property finder mallorca, which will help you find great real estate options in Spain.
The situation in the country
- There is a tourist boom in Spain: in 2017 there were 9% more tourists here compared to the previous year (82 million people).
- Now the country is the second most visited by tourists in the world after France.
- Revenues from tourism are 10% of all income received by the country’s treasury.
- The tourism sector employs 13.7% of all Spanish workers.
More and more Spaniards are working, which is great news, because in this country unemployment has always been one of the most pressing issues, showing some of the highest figures in Europe.
New buildings – more and more, lending is growing, the Spaniards are back in the market
Even in times of crisis, construction has never been completely suspended, but since 2014 the market has been showing growth:
- In 2014, for the first time there was an increase in the number of issued construction permits by 2%, in 2015 there was already a 42.5% increase, and a year later – by 28.9% compared to the stunning 2015. In 2016, the figure was 28.9%.
- The first quarter of 2016 was a record for 5 years: 57% more construction projects were approved than in the same period in 2015.
The Spaniards returned to their real estate market and started investing in it again. The number of transactions with local investors in 2014 showed an increase of 4%, next year – 11%, in 2016 – 14% and 14.6% in 2017. Mortgage Spaniards began to use, too, more willingly, together with them are increasingly receiving loans and foreign investors.
Prices are rising, to buy a home in Spain – it is time. According to Eurostat data, the growth dynamics of the average cost per square meter of housing in Spain in recent years was:
- In 2014 – the first positive: the price per square meter rose by 1.8%;
- In 2015 – by 4.3%;
- In 2016 – by 4.4%;
- In 2017 – by 7.2%.
Real estate in Spain in 2017 on average began to cost about 150 thousand euros. This is a record for the first time in 6 recent years. Of course, much depends on the area. Thus, in popular places such as Ibiza, Mallorca, Madrid, Barcelona – real estate is growing in price very quickly compared to the depths. If in Barcelona apartment in the center can be bought from 345 thousand euros, in a quieter Playa de Aro buy apartments on the first line of the sea can be 165 thousand euros.
As you can see, Spain has confidently emerged from the crisis and now its economy is gaining momentum in all areas. The end of the economic crisis in Spain – this is great news, but for investors who only look at the idea of buying property in this country, it means that it is time to act.