Spanish Real Estate property market is now much more internationalized, with properties available throughout the European Union. This has dramatically increased the competitiveness of the property market. Consequently, rental prices have risen significantly.
One of the reasons why the Spanish property market has responded in this fashion is that the government has pro-actively managed the real estate portfolio on a much more macro scale. In the past, the portfolios were more or less haphazard, as local authorities were more or less left to their own devices to deal with problems that arose. Today’s Spanish government has created many agencies and departments responsible for executing a much more coordinated approach to property management. In particular, the GVA agency (the central institution for buying and selling) has been greatly revitalized to more effectively coordinate the buying activities of investors. The GVA has also been given authority to issue guarantees for specific Spanish residential properties, which it usually guarantees for 30 years.