Marbella is a coastal beauty and has a very larger than life reputation. It's the perfect local for super-yachts, super-fast cars and a good share of super-sized bling. It also happens to be the property investment hotspot of the Costa del Sol. Over the past few years, the property market on the Costa del Sol has seen a big uptick in demand, and this uptick is predicted to carry through 2017 and well beyond.
Spain is the world’s third most popular tourism destination, surpassed only by France and the US. Which makes it an obvious and attractive destination to invest in a holiday rental property.
Tourism across Malaga province alone, saw record breaking numbers for the past 4 years, with another record breaking year expected this summer. Marbella's appeal is based on many things, which includes of course a winning location with strong infrastructure and its easy access. Marbella also happens to be situated in the most southerly point of Europe and sits at the base of the La Concha Mountain. It's also the surrounding mountains that provides what's known as a micro climate, giving the Costa del Sol its mild temperatures most of the year.
Marbella and area is the most year-round tourist destination of all the Spanish Costas. Here, there are enough residents even during the winter months. Because of its endearing popularity throughout Europe and now North America, rental properties have become a hot commodity. Even more, investing in buy to let or a rental property on the Costa del Sol can yield you very high returns.
Since the property bubble burst in 2008, second home values have continued to be a good investment. Marbella and surrounding areas like San Pedro, Puerto Banus and the Golden Mile remains a prime market and is leading the entire province to full recovery. You can get a two bedroom flat on the Costa del Sol from £116,000 and a good apartment in Marbella with sea views for around £700,000. It just all depends on where you are willing to look. Marbella properties for sale are always popping up and we've got the listings to prove it.
The majority of property sales on the Costa del Sol are resale homes, which are more affordable and currently in far greater supply. Not to say there are no new builds currently available. In fact that's not the case at all. New builds in Marbella are currently on the rise, and there is more construction going on now then there has been in quite a while - almost 8 years to be exact!
Sales and enquires are up sharply and have been since the end of 2013. We at KMS Property have seen first-hand along with lawyers and mortgage specialists as well. The most surprising of all is the major interest coming from the UK. British people are looking for a second home abroad and since 2014 the percentages of property buyers from the UK has increased year on year to date.
Economic factors are also playing a role with the European Central Bank cutting its benchmark interest rates, prompting lenders to lower their mortgage rates. But for many foreign investors it is the broader sentiment about the recovery that has bolstered buyers’ spirits. Since the beginning of 2016 buyers have shown more confidence in the Spanish economy and so have moved to invest.
As you can well imagine or you simply just know, it has been a long journey from the years of distress. Thousands of homes across the Costa del Sol and the Mediterranean in particular were repossessed by banks during the crisis. This was due to developers overstretching or owners unable to keep up repayments.
But today that's all changed and with the growing Spanish economy, property prices are due to rise. This means taking advantage now is the best possible option. Buying a rental property now can ensure you make money by summer. Don't forget that Malaga province is expected to receive 18 million tourists this coming summer season. Many of those will need a place to stay and many more will opt for self-catering. This means your rental property can cash in.
Finally, and probably the most important reason to buy now is the predictions made for 2017's Spanish property market. This year is predicted to be the most profitable to date in relation to property sales - particularly holiday homes. Marbella’s property market will stand on its own. In the past 10 years, as already known, we've seen many ups and downs for the property market in Spain, but Marbella has always managed to stay on top and maintain stability.
Even when it comes to specific property investors, it was only 5 years ago that the market relied almost solely on Russian buyers in search of luxury properties in Marbella. But today, that's changed and now we see the British sweeping in along with Germany, Belgium, Holland and the Scandinavian countries. Even the US is broadening their property horizons and looking to Marbella for a fast pay out.
Today, buying motivation is no longer driven by discount prices, but by the lifestyle and prestige that Marbella eludes. Marbella offers them the opportunity to purchase affordable properties in a location that will never lose its charm. All of these factors combined has resulted in a gradual increase of property prices, particularly in the surrounding areas of Nueva Andalucia and the Golden Mile. 2017 will see prices steadily increasing, as well as the amount of monthly property purchase transactions.
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