Property investment plays a primary role for example properties for sale in costa del sol stimulating growth in the Spanish economy.
Government body Invest in Spain noted this month that “Significantly more houses were sold than started or finished, with a gradual reduction of unsold stock under the Infrastructure, Transport and Housing Plan 2012–2024…the construction sector has accelerated its adjustment,” and envisages “a stable and sustained investor scenario.”
Málaga is among the 17 provinces to see its stock of empty houses fall, the remaining 31 provinces studied saw their empty housing stock rise. The financial stimulus (Quantitative Easing) injected by banks during the credit crisis are slowing being felt in a reviving real estate market.
During the course of the year, Paradise Marbella Realty experienced this stimulus in the investment landscape, and see it as a pointer to growth in the Costa del Sol property market. “For the last couple of months we´ve received several property investment requests from European and international sources,” the managing director explains. “This activity will be a priority for us in 2015 and going forward.”
Adding to the investment debate, consultants Grupo Arcano highlight three factors stimulating Spanish real estate: an increase in the number of foreign investors; greater demand led by the trend in lower prices; and real estate capital mobility enabling property sales to finance debt reduction, creating an environment for saving and investment “at a time active agents are better able to exploit.”
In its report this month, the Group doesn´t underestimate the role foreign buyers’ play in stimulating Spain´s growth, attributing two key factors to this vital engine of the economy.
Firstly, in response to the Juan de Mariana Institute recently discussing “Spain, the Florida of Europe”, Arcano highlight “a peculiarity of Spanish real estate: about one-third of transactions recorded in recent years are linked to foreign investors who purchase their homes in cash, without any mortgage.”
Secondly, the rise in new mortgage credit to fund real estate transactions in recent years “reflects the conviction that recovery is becoming a fact.” See graph of Spain new mortgage credit 2004–2014.
A fact European Commission President Jean-Claude Juncker reiterated yesterday (Wednesday), unveiling his Investment Plan for Europe.
The stimulus will create a special €21 billion EU fund to unlock €315 billion of private investment. Reuters note that while many “cautiously welcomed the plan as a good start, they would have liked the investment fund to be bigger.”