What a difference a week makes! When Spanish Prime Minister Mariano Rajoy declared to national business leaders last week, “This will be the first Christmas of the recovery” if commodity prices steadied, he clarified days later that Spain is on the road to recovery with positive growth forecasts for 2015 because every day more families come to find properties for sale in Costa del Sol, but of course there´s much room for improvement!
Economy Minister Luis de Guindos followed, saying that the low oil price at $60 a barrel was worth “€10 billion in disposable income for Spanish families.” Disposable income many will safeguard as contributions to competitively priced property purchases on the Costa del Sol, where the select portfolio available from Paradise Marbella Realty covers Alcaidesa to Sotogrande.
No sooner had the words escaped de Guindos´s lips than attention turned to Greece and the ghost of Eurozone instability coming back to haunt the markets. Reuters expressed concern “whether the country is forced into snap elections and a new period of political turmoil.”
As events unfolded this week, Russia captured the limelight. The combined effects of EU and US sanctions over Eastern Ukraine, the falling world oil price, and six Russian interest rate hikes this year have created challenging currency conditions for the Rouble, losing 50% of its value against the Dollar since the start of the year.
While The Spain Report suggests “the effects on Russian tourism and property purchases in Spain should worry the Spanish PM,” positive soundings come from Financial Review: “The property sector offers some intriguing end of year scenarios for investors as part of their 2015 investment resolutions.”
Solid political, economic and social relationships built between Spain and Russia this year haven´t shaken the confidence of property buyers, despite the shaky Rouble.
The latest Spanish Property Register highlights buyer profiles in Europe, with Andalucía continuing to lead the sales table. “Russians maintain a consolidated third place with 7.5% [of sales] assuming some degree of continuity.” The British account for 18.8%; French, 10.48%; and Germans, 6.45%.
With Brent crude oil prices stabilizing at press time, in turn causing the Rouble to stabilize slightly, Russia Today report “we might see that movement again” ahead of President Putin´s major economy speech today (Thur 18).
Reassuring global markets that Russia has spent $90 billion defending the Rouble and has a substantial Oil Welfare Fund, the inflow of property investors to the Costa del Sol won´t dry up any time soon!