WITHOUT doubt, the most challenging situation that Spain is facing today is how to steer the economy into stability with a looming recession in the United States across the Atlantic. The central bank of Spain as well as the central bank of the European Union is constantly monitoring the situation but they can certainly accept help from the Spanish people and the tourists.

The most that the Spanish people can do at this point is to stop hoarding cash and spend and spend of course. This is the only way to get the economy of a country revolving. Spain’s being a tourist magnet makes for its advantage. There are lots of tourists and expats coming here and therefore, dumping euros in the process.

In the real estate sector for example, buying a vacation villa is well worth it. You can even buy two more vacation villas in such places as Costa del Sol and lease them to other visiting foreign tourists as well. In this way, you are not just helping the Spanish economy, you are earning as well.

Despite the burgeoning economic crisis in the United States, there have been notable real estate developments in Valencia City especially in the coastal areas. The urban coastal thoroughfares of Valencia will be transformed later this year particularly this summer into a race track as it will be the site of the Spanish Grand Prix of the Formula One series. Our very own Fernando Alonso would love to reclaim his number one spot from current leader Kimi Raikkonen of Finland. For all this hoopla, one thing is certain – real estate developments near the race track such as subdivisions and condominiums are in full swing. Nearby will also be the site of America’s Cup in 2009. Having two major world sporting events in one city can certainly help boost the economy and the real estate sector in the country.

Of course who can forget the still prolific real estate markets in Ibiza, Palma de Mallorca and Tenerife. Ibiza as we know is the headquarters of house music and renowned DJs such as Paul Van Dyk, DJ Tiesto and Godskitchen are based there. Palma de Mallorca is the hottest summer destination in the Balearic archipelago among French students. Tenerife’s dormant El Teide volcano is one of the most awesome attractions in the Canaries.

In the latest news, La Caixa is now aiming to be the biggest private bank in Spain by 2010. This after La Caixa is poised to buy the Spanish unit of Morgan Stanley to the tune of 9 billion euros. Of course, the 9 billion euros already includes the debt inherited by Morgan Stanley. Still, it will be very rewarding for La Caixa for Morgan Stanley is one of the sturdiest financial institutions in the world.

With all the updates about underscored above, it’s really worthwhile to invest in real properties in Spain at this time of the decade. Come aboard the country as retiree and enjoy life for the rest of your days here on earth. Of course, if you are fond of the Spanish language, you could also decide to look at Buenos Aires apartments.