subject: Does the summer of 2011 hold the key to the Spanish recovery? [print this page] Does the summer of 2011 hold the key to the Spanish recovery?
There are many reports from holiday home owners and hoteliers that bookings for this summer in Spain are higher than the previous 3 years. This is in part due to the unrest in North Africa and natural disasters at long haul destinations across the world, Spain is becoming a nice safe holiday destination.
It looked for a while the Spanish air traffic control would shoot Spain in the foot by threatening strikes over the very popular Easter period, but this has now been called off and businesses in tourist destinations are hoping the government will halt any future action.
Since the 1960's tourism has been a major part in the GDP and accounts for at least 10% of the employment in Spain, during recent years tourism has slowed, before the credit crisis new destinations in Eastern Europe and North Africa were offering cheaper holidays, alongside travellers looking for more exotic long haul destinations. This could be about to change in 2011, Eastern Europe has lost its appeal, North Africa is in turmoil and long haul destinations are expensive and who wants to risk a holiday in an area prone to earthquakes!
So this is all good news for Spain, a safe, secure, holiday destination with great infrastructure and choices of holiday accommodation. If this is the case then it makes sense for investors to start buying property for the rental market. Villa holidays are a very popular choice for lots of Northern Europeans, renting a villa with private pool is many peoples dream holiday, an affordable choice for groups and families.
So is this the knock-on the property market in Spain needs, more demand for rental villas, means greater income for the owners. During the beginning of 2011 there has been an increase in property sales, this hasn't yet affected prices and there has been no rise in prices, but the demand is returning and are the smart investors starting to snap up the bargains?
On the ground in Javea and Moraira, two of the top destinations for buying holiday villas in Spain, there is a buzz in the air, agents are seeing much increased activity from British buyers, who over the last couple of years fell off quite dramatically and a bumper holiday season is expected which should see September and October - the most popular months for buyers show a major increases in sales.
