Spain is the fourth most attractive market in Europe.

Spain is the fourth most attractive market in Europe.

Acording to a Recent European Investment attractiveness survey done by the Advasory firm EY, Spain is the Fourth most attractive market in the European Community, just preceded by the United Kingdom, Germany and France.

Due to the growth of the Spanish economy (more than 3.2% in 2016), and the improving toursim industry, some South African Real Estate companies are starting to look for opportuniites in Spain.

According to Van Niekkerk, a senior property analyst at Nedbank CIB,South African investors were looking for opportunities in markets other than central and Eastern Europe (CEE).

“Valuation yields in CEE have compressed and some are looking at regions that are showing recovery opportunity such as Portugal and Spain.”

“It is also a part of a continuation of the larger theme of South African listed property companies that simply see better and more plentiful risk-adjusted returns in countries outside South Africa,” he said.

“Weak GDP growth in South Africa over the past few years together with the ratings downgrade and heightened political risk have had a negative impact on the country’s risk-return profile,” Van Niekerk said.

From Golden Section Capital, Mr. Garreth Elston also favoured Spain over the UK as a property investment destination:

“The Spanish economy has been very consistent over the past few years. There is steady job creation and the current account balance has been positive since 2013. The growth has been regional or city-based, with strong performances from Madrid, Barcelona, Valencia and places near the Costa del Sol,” said Elston.

Source: www.blglobal.co.uk