We know you’ve heard that investors are flocking back to the Marbella area and that property sales on the coast are steadily growing. Rumours about prices are, as always, a hot topic of conversation and while vendors can expect a small lift in prices, it is not quite a seller’s market yet, although the shortage of new-build properties for sale may well cause prices to rise more rapidly. However, from an investor’s perspective, this is an excellent time to buy.
According to statistics released by Tinsa (leading Spanish assessment, analysis and property consultancy) for May 2015, prices fell nationally in Spain, but on the coast property rose by 1.4%, which, if annualised, come to an increase of 16.8%. Importantly, Tinsa’s statistics also show that property prices have more or less bottomed out now on a country-wide level and that the only way is up from here on.
The data also shows that transactions in Marbella have grown by 28.7% in the past year and that new builds have grown by 101%, giving it second place on the coast behind Manilva.
The new builds “tend to be developments with high-end specs in excellent locations (frontline beach), aimed at the foreign buyer,” according to Tinsa. The developers are predominantly Spanish, although there are plenty of foreign investment funds active too.
In addition, figures from Eurostat show that British investors are hunting for places all over the Eurozone, as their bullish currency has increased their spending power this year while the European real estate market looks very healthy for American investors as well. When you compare property with the stock markets, you can see the attraction for investors from various countries, since the stock markets are showing few exciting rises and are expected to have reached the end of a bull run.
Not only that, but while Marbella real estate is moving up, the only way for stocks in the short run seems down, accompanied with a certain degree of volality. Yields are low and risk inherent, whilst property in area such as Marbella is realising solid returns that look set to rise further.
The time to buy, therefore, is now. Come and see our portfolio of stunning properties – we’ll find you a worthwhile investment in an up-and-coming area.
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