Suitors Considering Investment In Spanish Property

Investors are considering splashing the cash on Spanish real estate as the country’s economy and real estate market seem to be finally cleaning up, following a long period of recession. The nation recorded an increase in GDP for the first time in five years during the third quarter this year, and investors from across the world are beginning to display interest in their property market. Although complete recovery may take a few years to materialize, interest from foreign investors is sure to boost the market.

Spain’s real estate woes are no secret as several thousand properties remain unsold. Banks in the country have suffered due to the economic trouble and a host of unwanted real estate assets have piled up on their mortgage books. Market insiders are of the belief that the country has moved past its worst moments and the only way now is up. While some investors are still cautious about what the future might bring, others are making the most of the present situations and flocking to the Iberian peninsula with the intention of racking up some fine properties for extraordinarily affordable prices.

What does the future hold for Spanish property?

On paper, investment in Spanish properties could not have offered a better value, but investors are still considering the wider continental picture which appears uncertain with a bleak future. There are positive signs pointing towards Europe and its consolidation following the recession, and the continent is poised to experience a fairly better medium to long term future. However, the short term signs are mixed.

Several different austerity measures have been implemented by the government of Spain as a large number of businesses and people have been pushed to the limit. Conflicts and unrest have become a common feature among the various authorities in the country while the locals and their businesses have also suffered a lot.

Since a good economy is essential for a good property market, Spain’s 26 per cent unemployment rate only made matters worse for the nation. However, the economy’s recent upturn in GDP has provided hope for the future as it is seemingly taking short and effective strides towards recovery.

Promising long term future

Although Spain has experienced a quarterly increase in GDP, a mere 0.1 per cent does not appear too exciting. Several real estate experts in the country are predicting that there may be a further decline in the near future as the market is still not stable. But, the medium and long term future is expected to be positive thanks to an influx of foreign investors who are currently flocking into the country’s property market.

Spain is offering free residency visas spanning five years to investors who purchase big properties in the country. With a EU passport up for grabs, investors from the Americas and Asia are stepping up their interest as they look to capitalize on long term benefits. The fact that the visas can be converted into permanent ones makes the prospect all the more fascinating for potential suitors who are set to invest capital into the market and in essence, the economy.