Spanish property is back in the headlines. And this time, for all the right reasons.
Reports from April, May and June 2015 show a total of 104,530 sales transactions with 382,471 properties having been sold across the previous 12 months. This is an incredible 13.3% year-on-year increase. The Ministry of Public works comments that this is the 6th consecutive quarter of recovery, clearly indicating that economic growth will continue throughout the coming year. So, does that mean that we should all be investing in Spanish property?
We ask this question with the echoes of unwise “home in the sun” purchases still ringing in our ears from previous years. The Costa del Sol, in particular, is well recognised as a unique market with a periodic nature of rise and fall. Therefore, strategic timing is a key requirement to successful property investment within the region.
In the fallout of 2007, many international corporations were able to take advantage with bulk-buys as over-stretched developers failed to meet financial commitments. In fact, it is the savvy funding from these types of institutions that has aided the recovery of the Costa in terms of both expenditure and the regeneration works on buildings that would have otherwise been left to dilapidation. 2015 sees the last of these renovation projects being brought back to the market with very high quality finishes and excellent price-tags. Great examples of this can be seen throughout the Costa del Sol with a new release to the West at Finca Cortesin and the East at Elvira with 30% off already discounted prices.
But the standard private investor was perhaps unable to take full advantage in these previous years where many true “bargains” also required a certain amount of personal commitment in terms of property negotiation and completion. It has taken the Spanish banks some years to address their overloaded portfolios of repossessed stocks and to align prices with current values, returning them to market as realistic investments.
However, Spain Properties Marbella now believes that the efforts required to adjust from a market that was once highly over-inflated to become a stable platform with high quality property offerings are now showing the fruits of intensive labour. The banks have been given significant support to ensure that their current repossession portfolios feature properties with attractive price-tags and they are able to offer mortgage assistance that is not available elsewhere in the market to ensure quick completions. In addition, as the investment funds begin to feel a new confidence in the profits made from their renovation projects, they now look to build new apartments and villas in prime locations at costs that were impossible pre-2007. These new build developments have proven to be in great demand with examples such as Cabopino Apartments selling out in record time.
The Costa del Sol is always at the forefront of Spanish property sales with the average property price-tag of 2015 now reaching 315,000€. This compares to a country average of 236,000€ – a huge 76,000€ difference. Of course, the price reflects the huge demand for apartment, townhouses and villas in an area with one of Europe’s most desired micro-climates, the 4th largest (and newly renovated) airport in Spain, 161 km of beach and 70 golf courses.
Spain Properties Marbella does indeed believe that right now, the Spanish property market offers the very best prices for the individual investor. Sales are now beginning to move quickly and we have no doubt that the next 5 years will be a period of growth with some exciting new build developments soon to hit the market.
For more information, contact us. We offer a no-obligation information service.
[source: Ministry of Public Works]