The Spanish Property Market 2017 – A Look Ahead
Marbella house prices are steady, foreigners are buying and the economy is growing. This incredible upward trend is predicted to carry on for 2017. Buying property in Marbella is just back in style. Spain's housing market is recovering and many other positive predictions are being made for the New Year.
Still, restoring property buyers’ confidence on the Costal del is top priority. Many questions are still being asked and rightfully so.
What type of property should I buy?
Where is the place to buy property on the Costa del Sol?
We understand some of the doubt floating around because of past occurrences, but the statistics speak for themselves. Considering many banks have restored faith along with many foreign buyers, there's no reason to worry about the past coming back to haunt us.
Looking back at the Spanish property market in 2016
According to figures presented by TINSA, the housing market in Spain finally returned to growth in the fourth quarter of 2015. This comes after almost 7 years of falling house price's and what seemed like a fragile economy. The Bank of Spain is reporting an even better year ahead for properties in Spain.
When it comes to the economy in Spain, in the first quarter of 2016, the Spanish economy advanced 0.8% from the previous quarter, the same as in the previous two quarters. All of this took place despite political uncertainty after inconclusive general elections in December of last year - the 11th consecutive quarter of growth. This year, the economy is expected to grow by 2.5%, after we saw growth of 3.2% in 2015 and 1.4% in 2014.
And there is more...
According to the Instituto Nacional de Estadistica (INE), in 2015 the total number of sales in Spain increased by an amazing 11% to 354,513 units from the previous year. This is when it all really starting kicking off - full recovery. The rise in transactions was attributed to foreign buyers, mostly in the areas around the coast. Even now, Britt’s remain the number one foreign homebuyers in Spain, and in Marbella. Closely trailing behind the Britt’s are the French, the German's, and the Swedish. Each of these accounted for about 6% to 7%.
Residential Construction is Coming Back to Life on the Costa del Sol
It wasn't too long ago when the big cities in Spain lacked adequate housing. This of course was due in part to the crash in 2008. Construction virtually stopped and all the noises that came with it seemed to leave a void behind. We know because we stayed here and stuck it out. Even after the crash, we managed to pull through and watched as the economy started to recover. Now, residential properties and construction is coming back to life on the Costa del Sol.
Thanks to those foreign investments, new Marbella developments are being erected. And it's not only Marbella, plenty of other areas across the Costa del Sol are seeing new developments pop up. This includes residential homes like brand new luxury villas, apartments and penthouses. This is in far contrast to the crash of 2008 when many new developments simply stopped being built, and subsequently abandoned. The news is fantastic and all the bustle that comes with construction is very welcomed.
What types of property are people buying?
Last year things really kicked off when it came to buying Costa del Sol property. The demand for luxury apartments and even homes for the middle class put Marbella and the Costa del Sol back on the map. The market is fired up once again because big investment came from overseas. These type of investments vary widely, from buying blocks of rented apartments to packets of mortgage debt and bank property management units. It seemed the sky was the limit.
The Spanish economy is recovering, year on year at least, since 2014. This makes the time to buy property ripe.
What's in store?
LINK - Analysts are predicting that there will be even more significant growth in the Spanish property market in 2017. At KMS Property, we deal almost exclusively with overseas buyers. We can tell you from first-hand experience that the demand for high-end villas and apartments situated in prime locations like Marbella and Puerto Banus is beginning to outstrip supply.
Meanwhile, LINK overseas investors are confident that prices have hit rock bottom and are set to increase going forwards. Potential sellers have also detected the early signs of recovery in the market and are keeping their houses in the expectation of forthcoming exponential growth.
KMS Property - Selling your property on the Costa del Sol
Saying the statistics and predictions are amazing would be an understatement. Here at KMS Property we've been busy selling property all around the Golden Triangle (LINK) and we can help you sell your property too. We are always looking for listings and we have a proven track record for selling property fast on the Cost del Sol.