What goes up must come down and then back up again. The recent years in Marbella have been tough for both buyers and sellers, however after a tidal wave of positive figures and reports from credit rating agencies, confirm that things are on the up. Property prices have risen more than 4% in the second quarter of the year, indicating that the Marbella and Costa Del Sol property market is indeed set to boom once again.
Whilst the summer months are extremely busy, packed with beach loving tourists in the holiday destinations such as Marbella, when it comes to property sales, October is when we see things really taking off. Property experts are sending out a red alert, for both buyers and sellers to get ready for a four month gold rush this year.
The Spanish property “bubble” initially burst in 2008 and since then it has been a slow, yet steady climb back up to the top, with the price of Marbella property stabilising and a rush of foreign money chasing assets that not long before were thought by many to be untouchable. Statistics show that much of the investment behind this recovery, has been made by non-Spanish buyers- which comes as no surprise when you take into account that the Costa del Sol, in particular averages 320 days of sunshine per year- a far cry from the colder climates of the UK and other European countries!
Another driving force behind this apparent boom on the horizon is the availability of mortgage finance at record low interest rates. The latest figures by the central statistics unit show that during July, a total of 21,863 mortgages were registered- which is a 21.8% increase compared to last year. Most foreign buyers choosing to invest in the Marbella area, are inclined to do so, due to the high returns received from putting your property on short let during the summer months. Many homeowners are now starting to visit mainly for the winter sun and seeing their properties as a financial investment, rather than just a holiday home.
With prices increasing at such a steady rate, now is the time to invest in up and coming areas in Marbella such as San Pedro de Alcantara and the New Golden Mile. There are still several distressed sales available, in prime locations making for excellent investments and with new developments at affordable prices coming onto the market frequently, a golden opportunity has arisen to make the most of jumping onto the uphill climb of the impending Spanish property boom.