Three ways Spain’s recovering economy benefits you

As Spain’s economy picks up, so do opportunities in work, property and socialising

The Spanish economy has begun to heal itself in recent months after spending a couple of years in the doldrums. Although unemployment rates remain above 24% (and are among the highest in Europe), job creation has increased faster than in most other eurozone nations…

Nationwide, economic growth has been stronger in Spain than even France and Germany in the past quarter of the year, and projections are positive that Spain will continue its steady recovery in 2015. But what does this mean for would-be property buyers in the UK? Does it matter that confidence has returned, a corner has been turned and the domestic gloom of the past few years is slowly beginning to subside?

Not everything that happens in the Spanish economy should affect your decision on whether to buy a home in Spain or emigrate to this wonderful country. The Costa del Sol, for example, was sheltered somewhat from the economic gloom thanks to its standing as an international hub attracting people from all over the world. But suffer it did, so signs of recovery are welcomed here just as much as they are in Madrid, Barcelona or Valencia.

But if you are a Brit looking at buying a home in Spain, here are three ways in which Spain’s recent good news will benefit you…

1. It underpins a stable property market

There are no official figures to show the proportion of Brits who both work and own property in Spain, but an educated guess would suggest that more than half of expat owners also work in Spain. Job security for this group of expats – including Brits, Irish, Germans, Scandinavians and more – ensures that they are more likely to stick around in Spain for longer, meaning fewer rushed or distressed sales.

Yes, for a buyer a distressed sale can sometimes mean a bargain. But it is never an isolated incident. If people begin offloading property in their droves – which is what happened when the economy crashed in 2008 – then prices tumble, stripping the market of confidence and profitability.

Property investment in Spain is more attractive under a stable economy

A stable, growing economy helps to underpin property prices, leading to steady increases that are sustainable, and protecting against crashes. If you are considering buying a home in Spain, this is an important point. And although the Costa del Sol has plenty of retirees and wealthy investors who do not need to work, it is also in their interests that property prices remain steady, propped up by a functioning economy.

2. It leads to greater services and choice 

During the depths of Spain’s economic turmoil, the Prime Minister, Mariano Rajoy, had a lot of tough choices to make. While raising taxes and amending employment laws affected certain pockets of the population, further austerity measures could be felt nationwide: potholes on roads were neglected; street lighting was turned off early to save power; healthcare provision was scaled back; public infrastructure projects were put on hold or cancelled – altogether, life became just that little bit more strained during the worst years.

Today, while not yet clear of the woods, people living in Spain can feel that confidence returning. The government has loosened the purse strings, with public provisions returning to their pre-2008 levels. In shops, bars and restaurants there is a renewed buzz and vibrancy; waiting staff are more secure, leading to better service leading to happier customers leading to more tips, and so on. A spring has returned to Spain’s step and has made the country a whole lot happier – something that should not be underestimated.

3. It gives you greater security 

Whether you are a freelancer able to work remotely; a retiree cashing in your pension; a professional who has just been relocated to Spain, or somebody hoping to chance their arm on finding work in Spain, then a stronger economy is great news for all of you.

Making the move to Spain is less daunting when times are good

Situations change. A well-paying job could disappear within a month. Freelance work can dry up, pension funds may need to be channelled elsewhere, and job hunts can be painfully slow. With Spain now set to create 620,000 jobs in 2015, there is an improved likelihood that one of those positions will be suitable for you.

Plus, your mere presence in the country will help drive the recovery higher and further, too – buying a home involves the employ of real estate agents, solicitors, removal companies and notaries; living in Spain will see you choose a hairdresser, a language teacher (recommended) and maybe even a babysitter or dog walker. Your disposable income will enter the local economy and have a positive benefit, adding to the cycle and increasing your chances of carving a happy, long-term life in one of the sunniest corners of the world.