Spain’s economic growth leading the way

Is now a good time to invest in property?

The last few years have certainly been tough for the Spanish economy.

Spain was hit hard by the COVID-19 pandemic.

Due to its impact on tourism and hospitality, GDP shrank by 10.8% in 2020 – which marked the deepest recession in 80 years and the harshest across all Western European nations. In fact, in an index that ranked 23 countries in terms of their post-pandemic recovery, Spain came last.

But mercifully, things have now taken a turn for the better.

According to a recent report by the Organisation for Economic Co-operation and Development (OECD), Spain’s economy has gone from ‘underdog to global powerhouse’ – and from 2023-2024, it’s predicted to overtake that of many countries with major economies.

Spain’s prospects are finally on the rise – and that can only be a positive thing for anyone who owns real estate in the Costa del Sol or is looking to invest in the near future.

A frontrunner in post-pandemic recovery

So what did the OECD’s report actually say?

Compared to the organisation’s previous estimates, Spain’s economic growth has now been upgraded – raised by four tenths to reach 2.1% for 2023, and by two tenths to reach 1.9% for 2024.

These figures may fall short of the unprecedented growth rates experienced in 2021 and 2022 – when the economy expanded by 5.5% due to the rebound effect of the recession. However, the report does highlight the resilience of Spain’s economy and suggests a return to a more stable growth trajectory.

The pandemic exposed a number of Spain’s economic weaknesses, particularly in the tourism and hospitality sectors. However, as things have returned to ‘normal’, including the number of international tourists, these weaknesses have become strengths again – contributing to the above-average growth.

Factors such as low inflation and a resilient labour market are also likely to have played a part.

The bottom line is things have improved. Spain is now emerging as the frontrunner in economic growth within the Eurozone and beyond – outpacing the likes of the US, the UK, France, Germany, Italy, Canada, the Netherlands and many other major economies.

Spain’s economic growth = a good sign for investors

From this latest report, one thing is clear – Spain’s economy is now thriving. Its growth rate is expected to outshine many other countries in the coming years. Which means, if you’re thinking about investing in Spanish real estate, now could be the perfect time.

According to data provided by TINSA, in May 2023, property prices in Spain rose by an average of 0.3% compared to April 2023. Properties are also 4.8% more expensive than the same time last year. With coastal regions – such as properties for sale in the Costa del Sol – seeing the highest increases, largely because they are the main beneficiaries of tourism and tend to attract second-home buyers.

If Spain’s economy continues to do as well as the OECD predicts, this trend is likely to continue.

Interested in property in our frontrunning nation?

Whether you’re looking to buy a rental property, are planning to relocate or would like a dream holiday home in the sunshine, property in the Costa del Sol is likely to be a safe investment – with the potential to offer a fantastic return over the next few years.

If you’d like to find out more and start your search, we’re here to help. As a leading real estate agency with an extensive collaboration network, we have access to thousands of properties for sale in the Costa del Sol – including everything from new developments and plots of land to re-sale villas, townhouses and apartments.

We continuously search the market for the best homes available in all the tourist hotpots – including Marbella, Puerto Banús, Estepona, Cabopino, Nueva Andalucía, and Elviria – as well as many other coastal areas. Plus, we can assist in finding a property that meets your needs, preferences and budget, and guide you step-by-step through the full buying process.

So why not tap into Spain’s growing economy and take a look through our online portfolio?

If you have any questions about the impact of economic growth on property prices in Spain or would like tailored advice from our in-house property specialists, please don’t hesitate to get in touch. You can call us at any time on +34 952 939 460 (+44 208 068 7606), or send an email to info@bromleyestatesmarbella.com and we’ll respond as soon as possible.