A recent report on Marbella property prices in 2016, created by the property valuation company TINSA, which covers property in the whole of the Costa del Sol. Popular areas between Marbella and Manilva have been pointed out as a ‘clearly recovering’ area and the remaining areas outside the aforementioned are also showing signs of improvement with regards to property prices in 2016.
According to TINSA, the regional ranking of price rising in the first quarter of 2016, compared to the same period in 2015, is led by seven Malaga towns or villages. Casares (9.4% and 1,184 Euros/m2), Torrox (8.7% and 1,406 Euros/m2) and Torremolinos (7.2% and 1,387 Euros/m2) are the municipalities where prices have grown the most. They are followed by Mijas (7% and 1,274 Euros/m2), the city of Malaga (6.7% and 1,313 Euros/m2), and Nerja (5.6% and 1,636 Euros/m2), just slightly ahead of Marbella. The last one is the most expensive one of the whole of Andalucia, as the price per square meter is 1,864€ following a price increase of 5,5% .
TINSA also emphasized the relevance of foreign purchasers, as in 2015 40% of the sales in the Marbella area were made by foreigners, namely Brits.
Furthermore, the popular areas of Marbella, Mijas, Estepona, and Benalmádena led the sale of properties in the whole province of Andalucia, excluding of course the eight capital cities. In Marbella there were 4,396 sales and the charming town also took pole position in the national ranking. Mijas was fifth, with 2,372 sales. The developing activity is being led by locally based developers who are associated with foreign investment funds in the popular areas of Torremolinos-Mijas and Marbella-Manilva. Overall, construction works that had previously been halted have now been reactivated and new projects are also starting to be built.
With regards to the land market, ‘regular activity’ has now stabilized in the area between Marbella and Estepona. Talking about Marbella in particular, TINSA stressed that the cancellation of the PGOU (master zoning plan) in November 2015 did not in fact cause a stagnation of the real estate activity. Marbella is hailed to be an area of ‘really important admirable investment capacity’.
A large part of the banks’ repossession stock has diminished and the pace of sales is increasing. Prices are going up and it is forecast that the trend maintain its growth, as demand for property in the Marbella area is constant.
With regards to the type of construction, stand alone properties are being built in Marbella and Benahavís, and around 100 multifamily housing units in small numbers (25 to 30). The municipality of Marbella is the most expensive of the whole of Andalucia, as the price per square meter is 1,864€, and prices have increased 5,5% .
In conclusion, this is clear evidence that the real estate market is continuing to steadily increase, regardless of the latest referendums and Marbella property prices in 2016 are on the up.