The Marbella property market has been growing again and picking up momentum since 2013, but now there are encouraging signs that the Spanish market is also on the road back to recovery. Where the market in prime areas such as Marbella bottomed out late in 2012 and the recovery set in, driven by investors who snapped bank repossessed deals and cash buyers interested in luxury real estate, it appears that the rest of the Spanish housing market is following suit this year. International investors rediscovered Spain last year, buying in areas such as Marbella and Mallorca, but also finding lots of interesting big city real estate in Madrid and Barcelona, as well as large-scale commercial ventures in other parts of the country. At the time, the national primary housing market and the secondary market of holiday homes in such regions as the Costa Blanca, Costa Tropical and Costa de Almería did not share in this upturn, and they were expected to continue dropping in terms of price and sales transactions before bottoming out in the course of this year. 2015 was therefore marked as the year in which the Spanish national housing market would recover and the above-mentioned Costas would find renewed buyer interest, but results published by the National Institute of Statistics indicate that this process has already begun. Property sales started growing again in March, and continued the trend in April, and while some areas still haven’t quite levelled out yet the overall picture reveals the early signs of recovery. The same institute for statistics confirmed that the decline in housing prices is slowing down, having reached 0.3% for the first quarter of 2014. The figures are a national aggregate, so while particularly rural regions are still suffering a drop in property values, areas such as Madrid, the Balearic Islands, the Basque region and Marbella are recording a net increase. Add the fact that we are currently experiencing the first increase in mortgage lending in over four years, and many of the early indicators of recovery are in place, suggesting that the property market recovery that is in full swing in prime locations such as Marbella is slowly but surely spreading to the rest of the country.
Spain follows Marbella towards recovery