Expat housebuyers drive Spain's property boom
19 April 2006, MADRID — Expats are emerging as a driving force in the Spanish economy, boosting demand for new housing, analysts say.
19 April 2006
MADRID — Expats are emerging as a driving force in the Spanish economy, boosting demand for new housing, analysts say.
House-buying by expats helps to sustain the country's construction boom, reports the British daily The Financial Times.
"There is no risk of a property crash in Spain in the short or medium term thanks to new demand generated by immigrants," says Angel Berges, a partner at Analistas Financieros Internacionales, a Madrid consultancy.
Berges told the paper he believes immigrants will buy some 170,000 homes in Spain this year – almost one quarter of total demand for new houses.
In the past six years, Spain has seen a huge increase in its immigrant population.
The number of immigrants has risen to 4 million, making 9 percent of the population of over 44m.
One in three immigrants moving to the European Union since 2000 have gone to Spain.
Spain's rising divorce rate will also help to drive up demand for new houses.
Estate agents say people who have split up will buy up to 140,000 homes in 2006.
Last year there was an 80 percent increase in divorces, to 87,000.
It follows the introduction by the present government of the so-called 'express divorce'.
The number of separations fell by 51,000 as most people opted for divorce.
Subject: Spanish news