The Spanish economy has been on a downturn for years, but many are now forecasting that is may well grow throughout 2014. This follows recently published government figures which show that the domestic Spanish economy is, in fact, growing already. Indeed, in the final quarter of last year the economy had growth that outstripped any similar period in the last six years. Even though it is true to say that domestic consumption remains uneven and unemployment is continues to run at about a quarter, there appears to be an end in sight. With the economy showing signs of a real and sustainable upturn, but with many locals showing understandable caution with investments, the time may well be ripe to move into the Spanish property market – and Murcia in particular.
For investment buyers, who are looking to add to their property portfolio, then a hotspot in the Spanish property market, such as Murcia is likely to appeal. With villas and apartments in the region that are currently on the books of developers who would like to realise their asset sooner rather than later, many think that there can be few better places in Europe to invest at the moment.
Murcia, situated close to the east coast of Spain and near to Alicante and Cartagena, has been a favourite destination of British, Dutch and German tourists for many years. Many people from those countries have not just spent their summer breaks in Murcia but found it to be the perfect place to buy a holiday home, too. Even though Spanish investment in their local property market has yet to recover in earnest, there is little doubt that Murcia property prices will rise dramatically once they choose to do so. It could well be that it is foreign investment into Murcia villas and holiday homes leads the way and kick starts this local recovery. As such, many people are already identifying the region as one to move into and local Murcia-based estate agents have reported increased interest from potential buyers as well as a modest upturn in sales.
Nonetheless, there can be no getting away the fact that Murcia’s property market – both in terms of villas and apartments – has been under a downward cycle for the last few years. Cautious investors and those looking for a perfect holiday home are still often put off by the lack of growth that has been the hallmark of the Spanish property market for some time. During the bad times many Spanish banks – and mortgage lenders in the Murcia property market especially – loaned money against properties which have subsequently been repossessed from their owners. It is these sorts of residences that many potential buyers are eyeing as the ones with the most potential growth. It really comes down to whether or not investors will decide that the market has truly bottomed-out and that the growth we are currently seeing is going to be sustained.
According to Luis de Guindos, the Spanish economic minister, the signs are promising and a return to sustainable growth is really on the cards. He announced to the Spanish parliament in January that gross domestic product rose 0.3 percent in the three months before Christmas 2013. This, he noted, was a significant increase from the 0.1 percent rise in output in previous quarter leading him to say that – for the first time since the start of the economic crisis that has overshadowed the country – his country’s economy faces a truly different scenario.