The Costa del Sol property market recovery
Statistics show that the Costa del Sol property is going stronger and recovery is already way beyond most other areas of Spain and looks set to continue well for the coming years.
Marbella remains to be the most sought-after location amongst all other locations on the Costa del Sol, hence called the “the shining star” of the region’s property sector. It is therefore no surprise that Marbella is leading the way in terms of the recovery with sales rising 88.9% from 2008 to 2014.
It is projected that this year’s increase in Marbella property prices will renounce increases in other municipalities on the coast just as increases in demand in Marbella makes a positive impact on the demand in nearby areas.
New-build property is regaining back its important role on the Costa del Sol as there is now a scarcity of certain property types in hot-spot areas. Most of the repossessed bank stock has been sold off which has led to the development of “individual villas and small to medium-sized developments of apartments and villa communities.”
Despite the forecast that the number of new-build property will increase, they also believe that this development will be different from that of the boom years and that ” there must be an even greater shift from breaking virgin soil to urban renewal and land infill, and even more importantly: from quantity to quality.”
New developments are smaller and higher quality, which is mainly concentrated on modern design and better technical specifications with local firms also reporting an increase in renovations of existing properties. This shift is already evident on the Costa Blanca and the Costa del Sol has started to pick up this trend.
Nationality of buyers
An increased wide variety of nationality of investors from the UK, Scandinavia, the Low Countries, France, the Middle-East and Morocco, all account for significant percentages of purchases on the Costa del Sol.
Since the area has been affected by the problems in Ukraine which made a great impact on the numbers of Russian buyers, with the Costa del Sol being a favourite by Russians for quite some time, few Spanish buyers in the area have hangover from the crisis. Their numbers should begin to rise though as the economy continues to rebound.
With investors flocking into the market in order to obtain assets while prices remain low, it seems that Costa del Sol sets to experience a long period of growth. However, while there’s an uptick in sales, prices bottom out in many areas and rise in others.
The Costa del Sol is no longer in danger of losing its position as one of Spain’s most well known locations for foreign buyers, simply because of the continuing popularity of Marbella, Estepona, Mijas and Fuengirola as well as the inception of areas such as Marbella East, The New Golden Mile and Nueva Alcántara as future property hotspots.
This blog post about The Costa del Sol property market recovery was written by Marbella Estates for all your property requirements on the Costa del Sol.