Spain doubles its money

money-blackForeign investment in Spain for August this year was more than double what it was for the same period last year. This has been revealed in new figures recently published by The Bank Of Spain.

While August last year saw a healthy 1,998 million Euros invested in Spanish companies from abroad, there was plenty of scope for that figure to shoot up to 4,545 million this year.

Even taking the year as a whole, August offers a good benchmark as to where Spain is headed in terms of foreign investment. In that first seven month period the numbers are up 54 per cent when compared with the first seven months of 2015.

One of the hotspots of investment was property with Spain being named the seventh most interesting country for investors. This year the Institute for National Statistics reported that sales for residential properties increased by 23.6 per cent in May. The corresponding figures for sales were the largest recorded since January 2013.

THE INDICATORS

A good barometer that Spanish recovery is pushing along on a solid course is the demand for luxury apartments. And with enthusiastic foreign investment, residential construction is becoming an active sector once more. With construction practically grinding to a halt following the 2008 crash, external investors are now casting ever more eager eyes towards Spain, seeing it as an exciting opportunity. Not only are the financing options competitive but property prices themselves are also encouraging as they are seen to offer good value for buyers.

There are many more acquisitions planned with the real estate, hospitality and construction industries expected to be the key beneficiaries. Looking at this worldwide, Spain is ranked ninth in attractiveness with the USA, the UK, India and China among the international leaders in the sector.

Francisco Fernández Romero is the partner responsible for the Construction, Real Estate, Hotels and Transportation sectors of EY for Spain, Italy and Portugal. He says that there are numerous uncertainties at the international level and forecasts have reduced from optimistic to stable. However, he adds, ‘Spain managed to gain ranking positions and be among the ten most attractive investment destinations for real estate and construction executives.

SPAIN´S STELLAR RISE

His words are borne out by the fact that in the past year Spain is in the top ten of the most popular countries international investment having been in only 16th place last year.

Javier García Seijas, another partner responsible for Infrastructure & Project Finance of EY Spain says, ‘The volume of transactions in the real estate and infrastructure sector continues growing, and funds and investors are looking for long-term returns on mature assets. [These] are the main investors.’

The good news for Spain far from comes out of the blue. It recently came out as the second best country in the world to invest in. This was announced following a study by New Jersey based research firm Bretton Woods.

They also found that Europe as a whole was turning into a better and better bet for those looking to buy into the stock market.

This could all be part of the bright future that was predicted in a report released by ICEX earlier this year which showed there were strong foundations for sustainable economic growth in Spain. That showed a rise of growth in Spain that had continued through 2015 until it was almost at levels last seen in 2007.

For more information, please contact corporate law firm Argali Abogados.

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