The Spanish property market is maintaining its upward trend with residential real estate sales up 22.9% year-on-year in February, according to the General Council of Notaries. Some 34,268 transactions were completed in the month, with strong growth seen in sales of second hand apartments (up 25.9% to 23,277) and a 22.6% rise in the number of villas and townhouses sold. While sales of new homes have been driving the Marbella market, that has not been reflected on a national level, which saw a 5.1% decline of new-build sales in February although this can be expected to change in the coming months as earlier data from Eurostat showed substantial increases in the amount of construction activity in Spain. The country led Europe with a 20.3% rise in the sector through 2015. In Marbella high quality new build homes are particularly sought after and off plan projects sell fast—earlier reports from local construction companies have stated that demand is not the problem, but rather supply, with more quality real estate projects needed to satisfy interested clients. Sought after villas and apartments in Marbella While new properties in Marbella remain highly sought after, construction companies have started searching elsewhere, with developments in neighbouring municipalities such as Mijas, Benahavís and Estepona being built to the same high standards as has long been the case in Marbella. The increase in demand, coupled with generally favourable economic forecasts, has led many investors to identify Spain’s real estate market as a significant opportunity. Generally prices—even though in Marbella they have been steadily rising for several years—still offer good value, particular when compared to the 2007 peak. Real estate investment on the Costa del Sol A recent report from Jones Lang LaSalle (JLL) together with business school IESE, was particularly optimistic, with nine out of ten of the 100 ‘substantial players’ interviewed giving a ‘high’ or ‘very high’ priority to entering the Spanish real estate market. Of these 31% were looking to buy land for a mix of commercial, residential and hospitality use—indicating an upcoming surge in construction. The amounts of money to be invested are substantial, with 47% of those interviewed controlling investment funds of €100 million or more. While the big cities of Madrid and Barcelona are the main targets for investment, coastal hotpots such as Marbella are also getting their fair share of attention. As we previously reported, Marbella and its surrounding areas have attracted world-class investors with a series of leisure and property projects worth hundreds of millions of euros. Should you be searching for a new-build property on the Costa del Sol please contact us. Altavista Property is the leading agency in Marbella when it comes to marketing off-plan projects.
Spanish Real Estate: SALES UP 22.9% Y-O-Y