Property sector regains its status as a driver of Spanish economic growth
Statistics recently released for the second quarter of 2015 by the INE (National Statistics Institute) in Spain show that the country’s housing sector has ceased being a drag on the economy and returned to being one of its principal stimuli.
The statistics show that investment in Spanish property continues to grow and that both employment and wealth generation are also on the increase. The improving health of the sector has been one of the main factors behind Spain’s recent economic growth with the economy expanding by 3.1% year-on-year in Q2 2015.
Investment on the rise
Investment in Spain’s property sector increased by 5.1% year-on-year in Q2 2015 beating the corresponding figure for 2014 by one decimal point. It also represents the highest year-on-year growth for a quarter since Q4 2006 (5.5%) at the peak of the boom years.
Graph showing the evolution of investment in Spain’s real estate sector (Source:Idealista)
Impressive employment increases
Employment in the sector is registering even stronger increases than investment with the employment rate rising by 9.2% year-on-year in the second quarter beating Q1 2015’s increase by 0.1% and meaning that job creation is rising at the fastest rate so far this century.
Graph showing the evolution of employment in Spain’s real estate sector (Source:Idealista)
The amount of wealth generated by the Spanish property sector has also been on the rise and was up by 5.8% in the second quarter of 2015, the largest quarterly increase since 2001. This has been stimulated by the increases in demand and employment in the sector.
Graph showing the evolution of wealth generation in Spain’s real estate sector (Source:Idealista)