If you’re wondering whether to sell your villa in Spain fast, we have a mix of good news and bad news for you. Let’s begin with the good news.
There’s actually a lot of good news from Spain as far as its economy and the property market are concerned, with experts predicting consistent price increases over the next 5 years.
Brexit doesn’t seem have had much of an impact on properties for sale in Spain. The worst seems to be well and truly over. Spain has the fastest growing economy in the Eurozone and the tourism sector has just had a couple of record years in 2015 and 2016.
The Spanish GDP is set to grow by 2.9% in 2016, which is a remarkable comeback given that the country was under a severe recession for so many years. Of the €22 billion foreign direct investment that was poured into Spain in 2015, one-third was invested in Spanish properties.
Regions such as Costa del Sol have received over 7 million tourists so far in 2016. The tourist inflow in Spain rose by 18% over the last 12 months. So, even as much of Europe struggles with bad news following Brexit, the Spanish economy seems to be doing very well indeed.
But that’s not the complete picture. The reality is Spain hasn’t had a government since December 25, 2015. Acting Prime Minister Mariano Rajoy had said in the aftermath of the December 2015 elections, which threw up such a confused mandate that he would try his best to form a government.
Well, 8 months and another election later, Rajoy is still trying to form a government, without much success! The re-election held in June 26, threw up a mandate that has been just as confusing as the one before it.
Rajoy’s party, the People’s Party, failed to win a majority and has been scrambling to get support to form the government. None of the other political parties are in any position to form a government either. Crucially, none of them like Rajoy and the PP, which means, we are headed for another stalemate.
There is now a strong fear in Spain that we could be headed for another general election in December later this year. If this happens, there is a feeling in the country that politicians have made Spain the laughing stock of Europe.
Rajoy has accepted King Filipe VI’s invitation to form a government and has been negotiating with the Ciudadanos party. He has agreed to a confidence vote in the parliament before the end of August.
Unless the socialist PSOE, led by Pedro Sánchez gives up its utter disdain for Rajoy and agrees to support him, it is very likely that we will have another election in Spain. Three general elections in 12 months would be some sort of a record!
As Antonio Barroso of the political risk-advisory firm, Teneo Intelligence says, “There’s a certain exhaustion and very little appetite for a third election, especially if it has to be on 25 December, because the impression is that the second election didn’t provide a solution to the stalemate, and it’s negative in that it just widens the gap between citizens and politicians.”
But remarkably, as explained earlier, it is as if the Spanish property market does not care. It has been doing very well without there being a government in power, and there is no reason why it shouldn’t continue to do so even if the political impasse continues.