Why you should invest in Spain now

Why you should

Invest in Spain now!


Why you should invest in Spain now!

6 years ago, investors collectively left Spain when it nosedived into a recession that shocked the world. Many European ministers were wary of the Spanish economy, and its ever-growing unemployment rates. Investors were afraid Spain would leave the Eurozone, and the same fate would abound this southern country as it did in Greece.

But Spain recovered, and it recovered very well!

The Spanish Economy is fighting back

The investors are once again flocking to invest in Spain and in particular in Spanish real estate. Especially in Southern Spain where you can clearly see the difference.
The growth of the Spanish economy has excelled itself even after the already dramatic growth figures presented in June according to an article in Markit .
According to the online financial information service, the economy overall in Europe actually dipped a little last month, but Spain’s economy just grew and grew in the past couple of months alone.


Most notably in the hospitality sector of Spain, did the spurt in the economy growth get noticed. The unemployment dropped to 23.7%, the lowest in 11 quarters.
Investors kept a close eye on the Spanish economy in the past months, and have now once again decided to invest in Spain, in particular the property market in Spain.

Investing in Tourism

Investors are not just choosing to invest in Spain as a whole, no, they seem to pick up on a new trend of the luxury villas and small hotels. They know where the most profits are to be made in Spain, and the leisure market makes up 11 percent of the Spanish economy according to Reuters with over 8.8 million visitors alone in July.

Investors are putting their money on the smaller development opportunities  such as luxury villas in sunny and popular locations such as Madrid & Barcelona, but there is an influx of investors now showing their interest in the more southern parts of Spain including Marbella & Malaga.

Even though Spain has been through the worst part of the economic crisis that hit Europe 6 years ago, Marbella never really felt the true impact of the economic downfall on the country.

“Marbella has always been a little bubble compared to the rest of Spain” Says Marbella resident & economist Sarah Dunley, “of course, we have felt the tourism crash in Marbella, and the high season almost became “high months” at some point with all the business concentrated in just over 2 months of the year, but since Marbella is such a diverse city, and has this microclimate making it a popular destination all year round, we soon noticed that we had less to spend, but could still afford the luxury lifestyle.”

“Marbella has always been popular with tourists, there is no doubt about that, and that will never change. As long as the sun shines and the sangria flows, Marbella will continue to thrive in what it does best: supplying tourist with a wonderful holiday destination.”

Looking at the economy of Andalucía, there is a point to Sarah’s story. The property transactions in Marbella are up a staggering 28% since April this year. And according to the figures from the Ministry of Development in Spain it shows that sales in Marbella have increased faster than any city over the past year. This information alone proves that Marbella alone is carrying the country to full property market recovery. Investing in Marbella is a move in the right direction.

Global Interest

Even the wall street journal wrote an article about the high demand in luxury villas in Marbella this year  claiming the interest from the Middle eastern and Scandinavian countries looking for second homes to invest in, has increased tremendously.

The luxury home prices in Marbella are still relatively low, and this is what the investors cash in on. Some amazing luxury properties  are up for grabs for a fraction of the price they were 7 or 8 years ago.

Investors know now what the best places are to invest in. The famous La Zagaleta Resort, the New Golden Mile, Rio Real with its famous luxurious golf course and the Los Monteros area are all high on the list of Investors.

“You have to get in there quick, before the prices go up again” claims Sarah, “the investors have been here a while now, checking out every possibility available, and have started to buy up the most idyllic locations and properties. Soon the only thing left are “second line” properties as we call them. Still great investments, but the big win, they can only be had in first line.”

A big investment boom like the one we saw in 2000 and before will be out of the question, but seeing the influx of investments in the luxury market in Spain at the moment gives many investors the confidence to once again put their money on Spain, and in particular the South of Spain where tourism will continue to exist, rain of shine.


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Sandra Young

Sandra is a reputable journalist originally from Hertfordshire (UK) now living in Sunny Spain. She is involved in the Spanish Economy and deals with many property investors on the Costa del Sol giving them advice on the best investment opportunities coming on the market.