The Spanish property market has long been considered one of the most stable – both in terms of price dynamics and location-based factors. The very good economic situation on the Iberian Peninsula also has a significant impact on its attractiveness for investors.
Spain the economic leader
In the annual ranking, conducted by The Economist, it was Spain that ranked 1st among OECD countries. It has risen to the leading position from eighth place, recording, among other things, one of the highest GDP growth rates. Eurostat forecasts put it at 3% in 2024, with inflation at 2.8%.
“The Economist” highlighted that one of Spain’s strongest points is the labour market, with unemployment falling to its lowest level in more than a decade, although it remains above the EU average. The labour market is fed by a natural pool of South American workers, easily integrated and with no language barrier. The country is also attracting non-EU experts with visas for ‘digital nomads’ – choosing to work remotely from the shores of the sun, where it shines for more than 320 days a year. According to the ‘Moving 2024 Report’, Spain was ranked 2nd in the ranking of countries to which Poles are moving.
At the same time – according to Eurostat – property price growth in Spain is much lower than in Poland, as it amounted to 8.3% in Q3 2024 (compared to the same period in 2023), while in Poland it was 14.4%. An even greater difference can be seen over the last 5 years, between the Q3 2019 data. – In this period, property prices in the Iberian Peninsula increased by 29.2%, while in Poland they increased by as much as 69.3%.
See also:
Property in Spain: a secure investment in uncertain times
Poles break record in 2024 Spanish property market
Where is the safest place to invest in property? On the Iberian Peninsula!
Why invest in Spain?
The low level of lending rates in Spain translates into a growing interest among foreigners to purchase property in the country. The availability of flats and houses on the local market is also important. Deloitte’s Property Index report shows that, in addition to the number of housing starts and completions, the total number of dwellings is usually considered a key indicator of both the standard of living and economic development of countries in Europe.
The value and, at the same time, the stability of the Iberian property market was also confirmed by IQI Global’s ranking of the safest countries to invest in property. Spain was ranked together with Portugal and Italy. The ranking was based on several indicators, including: market stability, potential for property value growth, rental prices or legal regulations.
An important motivation that is increasingly emerging among Poles is the issue of the unstable geopolitical situation in the Central and Eastern European region following the outbreak of war in Ukraine. The potential threat to countries in this part of the Old Continent may affect the entire region, which certainly has consequences for the real estate market. Buying a flat or house in Spain will be a much safer transaction in this case. Property on the Costa del Sol has also historically been considered a ‘safe haven’ in times of uncertainty.
