Assetz® News » HOME | RSS Feed FEED | LIST ALL ARTICLES | ASSETZ HOMEPAGE
Investment Property News from Assetz

Assetz® Property News Service

Booming Spanish economy good news for property investment

1st March 2007 | back to article listings BACK    print this article PRINT

Spain's healthy economy should offer more good news for property investors as the boom shows no sign of abating.

Latest government statistics show that economic growth is at 3.9 per cent, the highest in six years and 1.2 per cent above the Eurozone average, while the health of the public finances is as good as it has been in 30 years, with a public sector budget surplus of 1.8 per cent of GDP, euro2day reports.

Reflecting on the surplus - one of only four in the Eurozone - finance minister Pedro Solbes said: "The rise is a faithful reflection of the excellent state of the Spanish economy and the labour market and the positive results of the fight against fraud."

That labour market is a key factor. Last year saw Spain create 700,000 new jobs, which was as many as the rest of the European Union put together. Reporting on the trend this week, Bloomberg also noted that part of that labour market expansion, the construction industry, has seen 800,000 new homes being built last year, three times the EU average, according to bankers JPMorgan Chase & Co. The figure reflects both the demand for property and the increased opportunity compared to some countries, where development is often stymied by regulations, enquiries and objections to a far greater extent.

Bloomberg also noted a broadening of the economy into other sectors as money pours in. Jose Falgas, of investment bank Socios Financieros SA told the news agency: "We're seeing people who had a large weight in construction switching to other sectors." Growth across the economy offers increased employment prospects for immigrants across the EU and with it more buy-to-let opportunities as demand in the rental market increases.

Thus a booming economy and government surplus can be of great help to property developers in the buy-to-let sector, with increasing jobs providing opportunities for immigrants. Furthermore, a budget deficit gives a government the opportunity to spend on public services amenities without having to borrow more or raise taxes. Should the Spanish government undertake such investment it will make the country even more attractive, although according to euro2day the reduction of budget deficits is the first priority at present.

It is small wonder that in the circumstances property in Spain is booming. Italian property researchers Scenari Immobiliari told Fly2let this week: "Spain should maintain and consolidate the exceptional growth of recent years". That growth is offering those who invest in property the promise of a land of plenty.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/3319.html. Alternatively, please see our full press release archive.

Assetz® is a UK and International Property Investment Specialist. Please visit our property sites shown below.

Assetz for Investors UK Assetz Hotels Assetz Homes Assetz International Assetz France Assetz Spain Assetz Cyprus Assetz Germany Assetz Portugal Assetz Ski Assetz Cape Verde Assetz USA Assetz Finance Assetz Fund Management

Accessing the news service

You can view all of the Assetz® UK, International and UK Property Investment Articles and News here.

We also provide an RSS Feed Feed of the news service, or you can view all articles. Click here to view more information on RSS readers and how they make reading online news more convenient.

eXTReMe Tracker