“The property market situation in Spain is changing significantly once again”.
In the early years of the 21st century, the Kingdom of Spain became the Florida of Europe. It is a country that lies on southern tip of the European continent, in the shape of a peninsula, and washed by the warm waters of the Mediterranean Sea on its eastern side, the Atlantic Ocean on the west, and the rough Cantabrian Sea on it’s greener and most northern tip. This is a country with deep cultural roots that go as far back as thousands of years before Christ.
Evidence of this can be seen in the amazing cave paintings in Altamira, Santillana del Mar (Cantabria). Its land was later populated by Greeks, Phoenicians, Iberians, Carthaginians, Romans, Germanics and Arabs, who gradually configured the first nation State of Europe, under the rule of the Catholic Monarchs. Spain is a country which has created the most renowned cuisine worldwide; it is no wonder that this is where the highest number of Michelin-starred restaurants are located, its popular cuisine is rich in flavour and tradition, and is an important part of the famously healthy mediterranean food.
It is a country which, after undergoing a difficult period between 1936 and 1975, took a giant leap forward enacting a new constitution which drove Spain into the European Union and all the international forums, playing an active and relevant role. It is a country which, in 40 years, has managed to place its economy among the top five in Europe, with a strategic approach focusing on infrastructure, mainly with regard to new airports, high speed trains, and excellent public services in terms of health and education.
In this context, the property market experienced a rapid development between 1996 and 2007, reaching shockingly high figures (in 2007, 850,000 houses were identified) that eventually led to a burst of the housing bubble. Besides lack of adequate governante in unsustainable levels of property supply, and poor management of mortgage bank loans to finance acquisitions, in certain municipalities of Spain (mainly in the Mediterranean coast), some corrupt mayors and councilors allowed construction of illegal housing, which has posed serious risk for bona fide purchasers.
As evidenced last 20th of November in the Forum organised by Money Market at the Hotel Meliá White House in London, the property market situation in Spain is changing significantly once again. After bottoming out by the decline of newly-built property due to the high stock of empty houses, the property market begins to bloom once more, but this time in a very healthy light. For this reason, it is the perfect time in economic terms to buy property in Spain.
The property market has stabilised and it will not go down any further, quite the contrary; as economic recovery is gradually consolidated, prices will tend to grow, slow but steady.
Moreover, the political situation is changing radically. Spanish citizens are increasingly demanding of their politicians, especially in the fight against corrupt practices which took place mainly in the construction sector, as it generated substantial amounts of money. Thus, there are less chances of the same scandals taking place again. Additionally, there are property hedging products such as that presented by the underwriting agency, Dual Asset, in said forum.
This new scenario has led to foreign purchasers buying 55,187 houses located in Spain in 2013, representing 21.40% of total national property sales, and an increase by 21.40% over fiscal 2012.
In short, Spain’s attractive features are still extremely appealing, not only to visit as tourists, but to purchase a second home which enables owners to live in a warm place, with a quality of life difficult to imagine in most European countries, as well as a public health system which is ranked among the best in the world.
All these elements are only a two-hour flight away from London (available with many airlines, including those which are low-cost, connecting many cities in Britain and Spain). Not forgetting, of course, the wide range of golf courses, and a football league at least as important as the Premier.
Do not hesitate. Do not let this opportunity go by. It is the perfect time to purchase property in Spain.
fuente: money market uk
