Positive news for Marbella real estate.
Spain’s second largest bank is forecasting a positive year for the Spanish property market as a whole and interestingly its projected figures closely match those experienced in Marbella through 2015. The BBVA has predicted that sales throughout the country will increase by 10%—closely in line with the 10.3% rise seen during 2015, according to the Ministry of Development. The bank is also predicting a 3% overall rise in property values, but it expects this figure to be substantially higher in hotspots such as Marbella, Madrid and Barcelona, with the national average held down by underperforming regions away from the major cities and coastal areas. However, even in those less desirable parts of Spain the days of falling prices look to be over as they start to follow the trend for steady gains established by Marbella since 2013. Meanwhile, property market analysts from KMPG, Deloitte, N+1 and PwC broadly concur with the BBVA’s predictions. They expect sales to rise by between 10% and 12% to around 440,000 transactions, worth €20 billion this year. Low interest rates combined with economic growth and falling unemployment will further fuel the positive cycle. Marbella property sales continue to grow Locally, increasing sales to foreign residents (up 39.2% in Málaga province) have been crucial to the Marbella real estate market, according to recent data from the Ministry of Development. On a provincial level 25,766 properties were sold in 2015—10,125 of which to foreign buyers—an 8% rise on 2014, with almost a third in Marbella and Málaga city. While the latter saw a 21% increase in sales to 4,786, Marbella showed its importance to the regional real estate industry by nearly matching the much larger city with sales of 4,396 properties. To put that into perspective, the fellow Costa del Sol towns of Fuengirola, Benalmádena and Torremolinos recorded 4,455 sales as a combined total. The second most important municipality on the western Costa del Sol was Mijas (2,373), with Estepona third (2,052). The BBVA forecast is in line with a series of recent reports from a wide selection of independent bodies, including the EU, which have been up-beat about the Spanish real estate market, while investor confidence in the country is high, as we reported in a previous blog. Altavista Property concurs that the future looks bright for the region and expects sales to rise in line with forecasts and prices to continue to make steady gains, especially in Marbella itself. If you would like to investigate the possibility of investing in a villa, penthouse or apartment in the resort town to take advantage of this rising market, please contact us for a consultation.
