The property market recovery in Marbella and the Costa Del Sol, is undoubtedly due to the more diversified foreign investors, who are better financed, and taking advantage of today’s bargain prices, while the local demand is still crippled by high unemployment rate and mortgage restrictions.
Recorded home sales in Spain last year was 286,408 (exclusive of social housing), up by 4% compared to that of 2013’s, but still down by 60% compared to that of 2007’s, which is considered as the peak year. The National Institute of Statistics latest figures likewise show that the property market increased by 10% in a year, and 28% in a month.
Based on the new collaborative market forecast report of Instituto de Practica Empresarial (IPE) business school, Spanish property market is undeniably undergoing a widespread recovery nowadays. This growth is primarily due to foreign demand for vacation homes on the Costa del Sol.
Property prices Costa del Sol
Average property prices on the Costa del Sol, which decreased up to 47.6% since the economic slump, has started increasing of 3.8% at the end of 2014, and subsequently gone up to 10% this year, constituting 5% of the overall nationwide sales. Should this trend continues, the property market in Málaga province is estimated to experience an increase of up to 20% of the overall Spanish market.
Additionally, the report also reveals that the average Costa del Sol property prices decreased by 2% year-on-year in July, which is considered as the lowest decline rate since May 2008, but this masks growth in areas specifically along the Mediterranean coast, where some of them seeing price growth of 2.8% year-on-year basis.
With increasing sales in Marbella and across the Costa del Sol, house prices are responding with small profits in the prime locations. Asking prices have clearly increased up to 9% since its worst point in the second quarter of 2013, taking them to 83% of their peak prices.
Property Costa del Sol
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