The property market may have collapsed and the Spanish economy may be in tatters but are people still interested in setting up a new life for themselves in Spain?
We see many people now actually leaving Spain and returning to the UK. They are mainly just unable to make ends meet and so can no longer continue to live in the country.
For the self-employed in Spain there is virtually no assistance should your business grind to a halt and if you're looking for a job...don't bother. Most jobs advertised, particularly along the coasts, are commission only sales jobs. Jobs are very hard to come by now, even for the Spanish, so what chance does a newly arrived expat have?
The new generation moving to Spain
In order to understand the current interest in moving to Spain we need some data to work with. There's little point in looking at property for sale enquiries as many of those are people generally looking to buy a holiday home. What we need to take a look at is the number of people looking to rent long-term in Spain. There can generally only be one reason why someone would want to rent long-term in Spain and that's to live here.
This is where we have a distinct advantage at Eye on Spain. www.eyeonspain.com ranks number 1 in Google for the search phrase "long term rentals spain ". It means we get the most traffic for these searches and is the reason why we generate an unprecedented number of enquiries for our long term rentals listings.
So what does the data reveal?
Just after Christmas is always the busiest times for people searching for long term rentals. I assume that this is because they are looking to start the New Year with new dreams and ambitions. The bad weather in the UK tends to push more people to consider a new life in warmer climates.
So let's compare the level of enquiries going back to 2007 when even then we were still ranking number 1 on Google for "long term rentalsspain".
Date Range |
Enquiries generated |
26 Dec 2007 - 18 Jan 2008 |
497 |
26 Dec 2008 - 18 Jan 2009 |
339 |
26 Dec 2009 - 18 Jan 2010 |
173 |
This is only comparing a small segment of each year but it is the most important segment. The after Christmas, early January "I want a new life in Spain" segment.
The results are quite staggering.
In two years the number of people enquiring on long term rentals in Spain has fallen by 65%. That's a lot less people thinking or planning of moving to Spain to live.
So what could have caused this sharp decline in interest in Spain?
There are several factors that I can think of that may help us to understand what is happening here:
1. Exchange rates
The Euro/ Pound exchange rate means those buying Euros aren't going to be getting much value for money, certainly not compared to a couple of years ago. This affects those looking to retire here on a UK pension. Their money just won't go as far as it should, especially as the cost of living has gone up in Spain over the past few years, it's no longer cheap like it used to be. (Read about Moneycorp to save money transferring funds to or from Spain.)
2. Employment
For those looking to move to Spain to work, the opportunities are few and far between. You can research jobs online before moving to Spain and those doing so will realise that there just aren't very many jobs available.
3. Lower salaries
The cost of living has risen in Spain quite dramatically in recent years but salaries have remained stagnant in comparison. If you are lucky to find a job in Spain don't expect a salary anywhere near to what you would have earned back home.
4. General insecurity
It might not be anything wrong with Spain that keeps people from moving here. Maybe because there is so much insecurity back in UK that more now prefer to just stay where they and wait for things to settle before committing to anything new.
5. Less TV exposure
There certainly aren't anywhere near the number of programs on UK TV glamourising moving to Spain, or abroad in general, as there used to be. Maybe the shine has been taken out of upping sticks and waving two finger at Mr Brown?
6. Am I missing something?
Do you know of any other reason why less people may now be considering moving to Spain? If so please leave a comment in the section below.
Well, I was hoping that the results of this would be a bit more positive but in line with the property market, general interest in a new life in Spain is also on the decline. We have a tough year ahead of us in Spain, especially those us who run businesses here but let's hope I have some better figures to share with you this time next year.
In the meantime, if you would like to list your property for long term rental then please click here.