As the euro continues to weaken against the pound and the Euribor interest remains low 2015 is fast becoming the year to invest in the Spanish property market and especially on the Costa del Sol.
Although most of Spain is seeing a recovery in house prices it is the Costa del Sol that is showing the greatest increases.
This is mainly due to the high level of foreign buyers that are attracted to the area.
For example look at the figures for Marbella
In 2010, foreign investment in new housing properties accounted for 12% of the market. In 2014, foreign investment represented 35% of the market.
Amongst foreign buyers resident in Spain, transaction value of purchases made across the Malaga region, which includes Marbella, increased for each quarter in 2014 over 2013 levels.
The data also shows that average property prices in key luxury districts across the Marbella region remained steady between the end of 2013 and the end of 2014. Average prices in Marbella Town rose in average prices to €2,307 per square metre.
According to statistics from the Lucas Fox website, international interest in Marbella comes primarily from the UK at 22%, followed by the US at 9% and after that, the Netherlands, Belgium and Sweden.
Source – http://www.propertywire.com/news/europe/spain-demand-overseas-buyers-2015030210211.html
Not only is Marbella attracting regular buyers back into the market but foreign investment funds are also looking at this area as a good place to invest.
According to Dario Fernandez, the head of residential properties and land at Jones Lang LaSalle Inc. in Spain…buyer interest is so high in coastal areas such as Marbella that international funds are now looking to buy land plots and build homes with local partners.
There are currently around 400 units under construction in Marbella, the most in six years, he said.
Source – http://www.bloomberg.com/news/articles/2015-03-03/british-lead-charge-as-cheap-spain-beach-homes-sell-real-estate
As you can see the Marbella property market has been showing signs of recovery for the last 2 years or so but with the decline of the Euro against the other major European currencies this recovery is set to increase even more in 2015.
If you look at the example of Pound to Euro rates you can see immediately the big impact the weakening euro is having in property prices. In March 2011 a pound was worth 1.10 Euros. Since that date the pound has seen a 21% increase and as of March 2015 a pound is worth approximately 1.40 Euros. What this means is that a property investment of 181,000 Pounds in 2011 is now available for 142,000 Pounds representing a significant saving of over 40,000 Pounds.
Along with this Euribor rates, variable rate mortgages have also fallen to a record low you now have a perfect time to buy property in Marbella and the rest of the Costa del Sol.
Bernard Vent, who is the managing director of Winkworth Spain, shares the opinion with many other experts in the property industry that Spain currently offers the most value in regard to return on investment (ROI) for both potential new homeowners and other property investment enthusiasts. There are very few, if any, markets outside of Spain throughout Europe that offer this high of an ROI.
Source – http://www.sourcewire.com/news/86513/winkworth-spain-announces-now-is-the-best-time-to-buy
With all this positive news 2015 looks to be a great year for property in the Costa del Sol region.
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