Spain and Portugal are attractive countries for real estate investment. A personal view of António Gil Machado, Director of the Iberian Property magazine.
Economic recovery – Iberian economies are experiencing an unparalleled moment, where we have a net gain on international market shares on traded goods, a surplus of services external account due to tourism boom, reducing public deficits and employment and producing a controlled inflation. Unlike last cycle, it is not internal demand fuelled by debt that drives economic growth, but increased productivity driven by foreign demand.
Quality of life –weather, culture, sports, gastronomic quality, beaches… there are endless arguments for Iberia to be a supper power of Tourism. Over the last years, tourism figures have reached unprecedented heights, both in Spain and Portugal. This phenomenon is of main importance to explain economic recovery, but also shows Iberia’s attractiveness both to permanent residents and to major corporations.
Investment security – the Iberian countries are among the less violent countries in Europe, and have been able to conduct well succeeded pro immigration policies and minority integration. Also, on a political point of view, Spain and Portugal are well established countries with a large consensus on main policies and EU integration.
These critical factors are fuelling international demand for real estate assets, both in Spain and Portugal, and at the present time capital flowing to real estate markets is mainly international. We can easily understand the reason for this investment flow, and I personally believe that all fundamentals are present to sustain a long term growth for real estate investment.