| ABOUT SPAIN | | | | and the relatively low interest rates further |
| Steeped in history, culture and tradition, Spain | | | | encourage inward investment. While Spain is a |
| conjures up images of beautiful beaches, classical | | | | vast land of differing terrains, the transport |
| art and architecture and a passion for life - | | | | system offers easy access by car, plane or train. |
| whether that be for football, dance or bull fighting. | | | | As visitor numbers are forecasted to grow |
| Whether you like to explore gothic cathedrals, | | | | substantially over the next few years, further |
| enjoy the local food and wine, or relax by the | | | | investment in the infrastructure is essential and in |
| Mediterranean Sea, it is easy to realise why more | | | | hand. |
| than 50 million people visit Spain (the second most | | | | This forecasted influx of visitors will ensure a |
| visited country in the World, after France) each | | | | healthy demand for property, and under a careful |
| year. | | | | new-build program, demand will always exceed |
| Located in the South West of Europe, Spain has | | | | supply. While there was a large increase of 17.5% |
| borders with Portugal and France but is otherwise | | | | in the price of residential property in the second |
| surrounded by the Mediterranean Sea, the Bay of | | | | quarter of 2003 (compared to same period in |
| Biscay and the Atlantic Ocean. Spain enjoys a | | | | 2002) this kind of return is unsustainable. A more |
| warm and sunny climate for most of the | | | | gradual return is expected over the next few |
| Summer and for some areas in Winter months. | | | | years, with little potential for downside in the |
| As well as mainland Spain, the Balearic Islands | | | | short to medium term. |
| (Ibiza, Minorca, Majorca) and the Canaries | | | | The government recently announced reforms |
| (Tenerife, Lanzarote, Grand Canaria) are popular | | | | which are aimed at increasing the buy-to- let |
| destinations for tourists. | | | | portion of the market from 11% to 20%, |
| The Iberian Peninsula was occupied by the | | | | thereby releasing some pressure from the |
| Romans in the 2nd Century BC and the region of | | | | purchase market. Some 3.1 million unoccupied |
| Hispania was formed. In the 8th century, the | | | | homes are to be brought into the market, which |
| Berber Muslims (or Moors) conquered the whole | | | | will again relieve some of the pent up demand |
| of the peninsula and large populations of Christians, | | | | experienced in recent years. |
| Jews and Muslims lived in close proximity. It | | | | Why invest in Spain ? |
| wasn't until 1492 that Spain became a Christian | | | | Unlike countries such as the UK where stock |
| country (now predominantly Catholic). That was | | | | market investment is very popular, Spanish |
| also the year that Christopher Columbus, funded | | | | residents have switched a large portion of their |
| by the Queen Isabella, discovered the "New | | | | investments from the stock market to direct |
| World" and the Spanish Empire was one of the | | | | property investment. |
| most powerful in the World. Spain had a large | | | | There is no doubt that the Spanish economy is |
| number of colonies in Central America and Mexico | | | | driven by the holiday market, and Spain has been |
| and many modern-day states of the U.S.A. | | | | a popular location for many years. As UK |
| At the end of the 19th Century though, Spain lost | | | | property prices have shown massive rises over |
| its colonies in the Spanish-American and there was | | | | the last few years, many are now switching to |
| some instability resulting in the Spanish Civil War | | | | the Spanish market which offers better value for |
| (1936 - 1939) with a dictatorship established by | | | | money. This constant flow of visitors has also |
| General Franco. It wasn't until 1975 (on Franco's | | | | encouraged a lucrative rental market, with |
| death) that Juan Carlos (grandson of King Alfonso | | | | attractive returns available, especially in the |
| XIII) was named successor and Spain became a | | | | coastal areas. |
| democracy. | | | | As coastal property prices have shown good |
| Although a Constitutional Monarchy, Spain has a | | | | growth over recent years, the effect is starting |
| number of regions (17 autonomous communities | | | | to spread inland where the more sedate and |
| and 2 autonomous cities) all with separate | | | | quieter regions are proving popular with the older |
| identities and histories and in some cases - | | | | generation. So whether you are looking for that |
| languages. People in regions such Catalonia, the | | | | vibrant, busy environment or a quieter, slower |
| Basque Country and Galicia, relate firstly to the | | | | pace of life, there is something for everyone. |
| region and then secondly as being part of Spain. | | | | Outlook |
| Property Market | | | | While the property returns seen over the last 10 |
| In recent years, there has been a large increase | | | | years are set to slow, many are forecasting a |
| in the number of overseas investors buying | | | | steadier more controlled property market, with |
| property in Spain, either as second homes or | | | | constant demand ensuring an upward trend for |
| main residences. In 2005, there were around 3.7 | | | | the foreseeable future. There are currently a |
| million foreign residents in Spain which highlights | | | | number of long term property developments |
| the popularity of the country for immigration. | | | | ongoing, which will flatten the supply / demand |
| There are large communities of British, | | | | trend line. Doom and gloom predictions for the |
| Argentineans, Germans and Bolivians resident in | | | | Spanish property sector appear to be wide of the |
| the country. | | | | mark. |
| The country has long been a favourite holiday | | | | Spain really does have something for everybody, |
| venue for many, with the British among the most | | | | whether you are looking for the architecture and |
| frequent visitors. Among the types of property | | | | art museums of Barcelona, the energetic night life |
| available, apartments, holiday homes and villas | | | | of Ibiza or the quiet life of Fuerteventura. Foreign |
| have been the most popular. The direct | | | | investment in the property sector is still rising and |
| comparison with the UK weather and climate | | | | is the main driving force behind the growth in the |
| offers the perfect venue for that summer break, | | | | sector. |
| or some where to retire in later years - with | | | | The buy-to-let market is also attracting lots of |
| many older UK citizens taking the opportunity to | | | | interest as the trend for overseas holiday homes |
| emigrate to Spain after retirement. | | | | continues. After the emergence of the budget |
| After historic periods of volatility, the Spanish | | | | airlines, it is now as quick to travel to Spain, as it |
| economy has been fairly stable for some time, | | | | would be to travel far afield within the UK. |