Spanish economy and house prices recovering

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growthBack in August Prime Minister Mariano Rajoy was optimistic about the recovery of the Spanish economy and on the back of a strong summer for tourism, it seems like his positivity was well founded. “Things are going better than we expected. We are registering healthy and diversified growth which is here to stay,” he said during an annual end of term press conference. “In less than two years we have gone from being an economy on the brink of a bailout to being one of the economies that grows the most in Europe,” he added. “We are going in the right direction, but we are conscious that there is still much to do and the problems that we must tackle are still numerous.”

It’s great to see positivity about the economy, all be it cautious statements such as these, promoted in the press, as positivity breeds confidence and confidence leads to a more rapid recovery. Another marker of an improving economy is house prices, which all owners who bought in the boom are anxiously watching. According to the Association of Registrars, there was an increase of 0.97% in house prices in the second quarter of 2014, the first in six years. Whilst not a big shift, it’s good news for owners as it shows that things are moving in the right direction and it seems at last that prices are bottoming out. This is also a figure for the whole of the country, we are lucky to be in a region which recovers quicker due to the foreign buyers and tourists pushing up the local economy and house prices, and agents on the Costa del Sol are reporting much better sales, more demand and increasing prices, so watch this space.

In further good news for Andalucia, very positive investments into the local economy can be seen, such as Fujitsu signing an agreement to invest nine million euros over the next two years, including increasing the workforce at the Malaga factory by at least 30%. There are also positive signs a plenty such as Marbella being chosen to host the Michelin Guide presentation and positioning itself as a luxury location on par with Saint Tropez.

All those of us invested in Spain, be it through property, business or living here want it to do well and recover for the long term. It is a wonderful place to live, work and holiday and we look forward to seeing what the rest of 2014 holds.

2014 was our 11th Year in business and we’ve seen a lot of changes as you can imagine. Attitudes of Costa del Property owners towards caring for their property through property management and maximising their investment through short term and long term rentals have changed a lot depending on the economy. We are proud that we’ve been able to generate income through getting rental bookings for our clients and removed the stress by managing those clients for them. This has enabled many clients to hang on to their properties through the bad years so they have not lost money on their investment. We are now seeing renewed interest in buy to let investment properties and look forward to the next phase!

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