Marbella Property prices set to riseOctober 19th 2015 | by Ginés García
Marbella Property prices set to rise. Spanish property prices, led by coastal hotspots like Marbella and big cities such as Barcelona and Madrid, are set to rise an average 2 per cent this year, according to a new report. Compiled by Bankinter, the study also forecasts the recovery in property values to continue into 2016, with prices predicted to increase by 4 per cent across Spain as a whole.
Nationally problems remain for parts of the housing market, with unsold stock still remaining in some inland and coastal zones, but as the report suggests there are big regional differences. Coastal areas like the Costa del Sol, which are popular with international buyers, are likely to see bigger price rises, offsetting the slower reaction in less dynamic parts of the country.
In the study Bankinter suggests there will be around 380,000 residential properties sold this year and forecasts that to rise to 420,000 in 2016, with the increasing demand leading to a gradual strengthening of prices across the board.
Marbella property demand outstripping supply
The report went on to say that the Spanish property crisis that led to an almost complete halt to new developments for five years means that there is now a shortage of property in some areas.
Ginés García, Director of Nevado Realty, comments: “This is something we have increasingly seen in Marbella. Good quality homes in sought after locations have been selling fast as demand has started to outstrip supply.” He added: “Not only do people want to buy a home to live in, but they are looking for investment opportunities and many people see Marbella as the perfect location to expand their property portfolio.”
Marbella real estate an attractive investment
It points out that real estate is an increasingly attractive investment, with gross returns on rental properties currently at around 4 per cent, plus the prospect of capital gains as the sector recovers further.
On a national scale, homes are now more affordable to Spanish families too, with the affordability ratio standing at 33 per cent of average gross household income, the same as it was in 2001. At its peak in 2008 it stood at 49 per cent. Increased consumer spending is seen as a sign that confidence is returning to the economy, and Bankinter expects that to feed into the property market in the form of increased sales.
The property market news in Marbella has been good for some time now, with the general trend of increased sales – up 28 per cent in 2014 – having the expected positive impact on prices.
Nevado Realty has a selection of quality properties in sought after locations with excellent investment potential. Please contact us and we can discuss your requirements. To read the Bankinter housing report, click here.