Employment in Spain’s property sector set to soar

Jobs in the Spanish real estate sector are predicted to rise sharply in the coming years.

The growing importance of the Spanish property market to the country’s economic recovery has been laid bare by consultant firm KPMG, which expects jobs in the sector to account for 10 per cent of Spain’s workforce by 2020…

Currently, Spain’s property sector accounts for seven per cent of the working population of the country, but as the market recovers and evolves into a more sustainable and attractive industry, young professionals are having their heads turned by the career opportunities that lay in wait.

KPMG conducted a study of 200 executives working with the Spanish property sector and discovered that 55 per cent of those were of the opinion that the industry will grow to account for 10 per cent of Spain’s workforce within five years.

Before the economic crisis of 2007-2008, the sector employed 15 per cent of Spain’s workforce, but with 2015 being labelled ‘Year Zero’ for the real estate sector, KPMG is confident that recovering demand will mature into a healthy, vibrant and growing sector of the economy.

One group unlikely to play much part in the Spanish property recovery is the Russians. The collapse of the Russian ruble – triggered by cheap oil prices, the war with Ukraine and the resulting economic sanctions imposed by Western countries – has decimated the spending power of many middle-class Russians who had hitherto been increasingly drawn to Spain.

“Not only are Russians not buying right now,” said the president of property group FIABCI España Ramón Riera, “but some Russians are actually getting rid of their Spanish properties.”

Data from the College of Registrars confirmed last year that the pool of Russian buyers was dwindling. In the first quarter of 2014 Russian buyers accounted for 8.8 per cent of the foreign market. That share had fallen to seven per cent by the third quarter, and there has been a drastic plunge in the value of the Ruble since then, losing 40 per cent of its value against the euro at the end of 2014.

It is a different story for British buyers, however, as the strong pound continues to make investing in Spanish property an attractive proposition. In some regions of the country – particularly areas of the southeast of Spain – British buyers have actually been outstripping domestic Spanish buyers, accounting for as much as 18 per cent of all transactions in some regions.

Spanish domestic confidence is returning, however, with more Spanish first-time buyers expected this year than in any year since 2007.