Spanish property: 5 things to look out for in 2013...

2013 promises to be an exciting time for the Spanish property market

These are exciting times for the Spanish property market. The past few years have been characterised by economic woes, fiscal turmoil and familial upheaval. The ‘crisis’ may have only tickled parts of the UK, but in Spain it’s been very real and uniformly tangible. People have marched, protested, suffered, moved – many bucking the trend of the past few decades and leaving Spain for the decidedly un-sunny shores of the UK and Germany.

But while 2012 might have plumbed unprecedented post-Franco depths in terms of the economy, it was also a year that offered plenty of hope for the future. That future starts in 2013, so here’s what to look out for next year…

1. Increased market confidence

Confidence in Spanish property will come, once more, from foreign buyers. Investors and lifestyle buyers alike were scared off during the lowest points of the property depression, but while the former are still discouraged from the market, the latter are returning in their droves. Expect that trend to strengthen in 2013.

2. Rising property prices

Property prices throughout many parts of Spain are expected to stagnate for the next few years, according to the government and the leading banks. But on the Costa del Sol it’s a different story. Prices have bottomed out in the past 12 months, and the current situation is on the cusp of an upturn. For buyers, it means that 2013 will be a great year to snap up a well-priced Spanish property, while sellers can look forward to getting a fair price for their home.

3. Greater connectivity

The cost of living has risen inexorably across Europe over the past few years. As wages have stagnated and job security has been steadily eroded, people have been reluctant to spend. But 2013 should be the year when most European countries finally pull away from the shadow of recession, which means higher spending power on holidays and lifestyle treats. In turn, that will mean flights are likely to become cheaper and more frequent as the low-cost carriers look to capitalise on this new-found confidence, bars and restaurants will find it easier to prosper and grow, and utilities will become more affordable – all of this is great news for both current and future expats.

4. A clearer economic outlook

Nobody really knows how Spain’s economy is going to perform in 2013, but whether it improves or gets worse, one thing is for sure – the situation will not be as muddled as it has been throughout 2012. The EU bailout earlier in the year was a painful pill to swallow for the Spanish, but Rajoy has repeatedly stated that his government will do all it can to avoid a second bailout. Such clarity and unity should set the economy in good stead, and so people looking to buy in Spain should be able to gain a clearer idea of how the economy is performing before they commit to anything.

5. The sun will shine

No matter what happens with the economy, the banks, the eurozone, the strength of the pound, disposable incomes or employment rates, the Costa del Sol’s dazzling sun will shine on. The Mediterranean will still sparkle. The mountains will loom majestically as ever. Local cuisine will taste as fresh and delicious as it always has, and that indefatigable Spanish way of life will endure – so if you’ve always dreamed of owning a property in Spain, 2013 promises to be just like every other year: absolutely gorgeous.