Spain's economy holding strong
The Spanish economy is currently enjoying a period of buoyancy, with steady increases in interest rates and strong growth predicted over the next few years.
Warnings about the Spanish property market have been over-exaggerated and experts suggest that it is unlikely to overheat, as the Spanish economy will outperform the European average over the next 2 years, with GDP growth forecast of 3.1% forecast for 2007, compared with 2.2% for Europe.
The high number of investors from outside Spain investing in the country's property sector have made it one of the most fertile markets in Europe and house prices in the country have soared by 170% over the past ten years, with 800,000 new homes built in 2006.
HSBC analyst Carlo Digrandi told Forbes that mortgage demand is likely to be supported over the coming years by "positive economic conditions" and that a housing market crisis would only be caused by rapid economy changes, which are highly unlikely.
Despite a slight dip in Spanish real estate stocks in recent months, the market continues to enjoy strong sales and rising prices. Though there may be a slight cooling over the next couple of years, it is unlikely to witness a market crash, as the economy moves from strength to strength.
Spain has witnessed impressive economic growth since it joined the European Community in 1986, becoming the 4th biggest EU economy and carrying out significant infrastructure improvements over the past 20 years.
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