Innovative property investments
Investment property in Spain
Buying Guide
Economic Drivers
GDP contributors
The economy is now dominated by the services sector, comprising retail, tourism, banking and telecommunications, accounting for approximately 65% of GDP.
Industry in total accounts for approximately 20% and motor vehicle manufacture forms 5% of total GDP.
Construction figures are very high for a European country, constituting nearly 10% of GDP, due to several factors including tourism, the development of the second home market on the Spanish Costas, investment in infrastructure and to combat a shortage of quality housing.
Market leaders
Several Spanish companies have really made the headlines in the 21st century acquiring such vast international companies as O2 (bought by Telefonica), Scottish Power (bought by Iberdrola), BAA (by Ferrovial) and Abbey National (by Banco Santander Hispano).
Some commentators predict that as time goes on, there are going to be more and more Spanish companies in the UK.
As the Spanish firms discover that they can't expand in their local markets, they look further afield, and Britain has certainly seemed an easy target.
Europe's Larder
Finally, agriculture, forestry and fishing makes up the remainder of GDP (approximately 3.5%) with Spain being a massive producer of wine, (it has more vineyards than France), olive oil (it is the largest producer in the world) and fruit and vegetables in Almeria and Murcia earning them the moniker 'Europe's Larder'.
Growth indicators
Current figures show that Spain's GDP is growing at 3.5% but unemployment is relatively high at 9.2%.
Unemployment is worse in the south as the traditional business centres are situated in northern provinces such as Bilbao in the Basque Country, Barcelona in Catalonia and the capital, Madrid.
The southerly provinces of Andalucia and Extremadura have not seen much business development outside of the main cities such as Seville and Cordoba; however, the relatively recent property boom has attracted a lot of investment.
Key facts
- Roughly 65% of GDP is generated by the services sectors: retail, tourism, banking and telecommunications
- Industry accounts for 20% GDP
- Motor vehicle manufacture contributes 5% of GDP
- A very high 10% of GDP comes from construction
- Agriculture, forestry and fishing supply the remaining 3.5% of GDP, especially it's wine, olive oil, fruit and vegetable production
- Spanish companies are becoming powerful European forces beyond their local market by buying up well-known brands elsewhere, such as in the UK
- Current GDP growth is 3.5%
- The northern provinces are the business heartland, particularly the cities of Bilbao, Barcelona and the capital, Madrid
- Unemployment is relatively high at 9.2% but concentrated in the south
- The southerly provinces are benefiting from a property boom and consequent investment
Downloadable Reports and Documents
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