Spain not only has one of the highest GDP growth rates in Europe but also a dramatically changing population in recent years.
Demand for all property over the last 5 years has risen due to many factors but a recent report from Luis Leirado (Director General of Tinsa who are one of the largest independent valuation companies in Spain) outlined his reasons for continued future growth in the medium term from the national (and by default the largest) market. You can draw your own conclusions as to the type of property but analysing Sr Leirado’s reasons I’d see a trend towards smaller properties whether they be villas or apartment:
1. Significant increase in single parent families
2. Rise in new Spanish residents, specifically on the Costas
3. Increase in immigrant population
4. Spaniards purchasing younger
5. Fragmentation of the traditional spanish family
6. Increase in the number of Spanish women having paid salaries (up 100% since 1993)
7. Favourable fiscal outlook from stable government
8. Switch into property a result of negativity regarding traditional investment options i.e. stock market
9. Reduction in inflation rates
10. Remarkably low mortgage interest rates (Euribor currently c. 3.53%)
11. Maturing of the Spanish mortgage market and increased liquidity
Kind regards and welcome to the Forum
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