We mentioned in previous posts that the Spanish economy is improving and that there is a lot of positivity for 2015, and this has been confirmed by the European Commission, which significantly raised its forecast for Spanish economic growth in 2015 to 2.3%. According to an article in El Pais, this marks the biggest upward revision in the entire eurozone and the report cites consolidation of the growth seen in 2014 with improvements in employment, falling oil prices, better financial conditions and increased confidence.
This positive news about the economy as a whole is also supported by the improving property market. There are reports coming through from the likes of the General Council of Notaries and CBRE property investors group (thanks to Spanish Property Insight for interpreting these) stating that the Spanish property market expanded by 19.1% in 2014 and that the level of property investment at the end of 2014 was second only to the boom year of 2007.
Our real estate sales partners at Viva, recently reported on their blog that Spanish house prices have risen for the first time since 2008, according to the Public Works Ministry. It was only a small 0.5% rise at the end of 2014, but taking into account the improved economic forecasts, the reports of improved activity in the market and the strong pound against the Euro, 2015 should be a good year for property owners in Spain.
On the Costa del Sol property owners have even more options, with a really strong tourist market and many families holidaying in the area and demanding self-catering accommodation. We had a 35% increase on holiday rental bookings in 2014 compared to 2013 and expect to see even more tourists coming to the Costa del Sol in 2015, particularly from the UK, as their money will now go a lot further. You can rent your property out short term or long term whilst the market continues to improve and your investment increases in value and we can help you do it with quality property management services on the Costa del Sol. Please let us know if you want to find out more about renting your property.