Real estate is always a large and intimidating purchase. Whether you’re buying your primary home or a vacation home, you need to make sure you’re making the right choice.
One of the best steps to take before you buy is to investigate your local real estate market. Whether or not you already live in the area where you want to buy a home, the ups and downs of the real estate market aren’t always obvious.
If you want to buy real estate in Marbella Spain, you’re in luck because that’s our specialty. Our experts have all the details you need to know about the Marbella Spain real estate market in 2018.
What You Need to Know About Marbella Spain Real Estate in 2018
If you’re considering buying real estate in Marbella (or anywhere, for that matter), a little research can protect your investment. Here are the facts and statistics you need to know about Marbella in 2018:
The Marbella Real Estate Market is Rising Steadily
Like all real estate markets, Marbella has had its ups and downs. However, the market is picking up steadily and all indications are that the trend will continue.
According to the Ministry of Development, home sales in Marbella were 10% higher in the third quarter of 2017 than in the third quarter of 2016. While real estate sales vary based on the season, comparing the same quarter in two years shows a clear pattern.
What does this mean for a potential home buyer in Marbella? There are positives and negatives. The active market may encourage more sellers to place their homes for sale. However, it could mean higher prices and a more competitive buying process. In this case, the earlier you can get into the market, the better.
Price Per Square Meter is Heading Back Up
Every homeowner loves seeing their property value rise, and homeowners in Marbella are enjoying this benefit now.
Across Malaga, the price per square meter hit a peak in 2008, but then it began to fall. Home prices fell steadily until 2015. However, they’ve been on the rise again since then.
From the first quarter of 2015 to the second quarter of 2018, prices have risen from 1.277 euros to 1.539 euros per square meter. This trend is has continued for three years already with no sign of stopping.
If you’re considering buying a home in Marbella, this seems distressing at first. Any home you buy today would have been less expensive in 2014 or 2015. The good news, though, is that your home value is still expected to rise in the coming years. That’s why now is the perfect time to get into the market rather than waiting to see how it changes.
Tourism Continues to Build
Did you know that Spain is the second most popular tourist destination in the world? We’re second only to France, and Spain’s tourism industry is growing at a steady pace. Marbella itself is well-known for its great tourism. It has the advantage of being right on the water, so chances are that the tourism will stay strong.
Marbella also has the advantage of a hefty tourism industry year-round. There are plenty of winter activities in Marbella for families, couples, and singles.
The tourism industry has a large effect on the real estate market. If your Marbella home will be a vacation home or a second home for you, a large tourism market means you can make money by renting it out when you aren’t using it. Even if you’re making Marbella your permanent home, you can use services like Airbnb to rent spare rooms in your house.
Another door this tourism industry opens is the opportunity for an investment property. If you want to buy a home to rent out as an investment opportunity, now is the perfect time to get into the Marbella real estate market.
Expect Inventory to Grow Modestly
One of the largest challenges while buying real estate is finding the right home. If your market has a limited inventory, you may have few choices. Even the options you do have can be snatched up by other buyers faster than you can prepare.
Low inventory is often a problem in a strong real estate market like that in Marbella. The good news is that there are signs of new development that can meet the growing demands.
According to the Observatory of the Urban Environment, there were 26% more permits for residential construction in the last trimester of 2017 than in all of 2016. This indicates that there is plenty of new construction beginning already and we can expect to see more throughout the rest of 2018.
Keep in mind that the inventory is expected to grow modestly, though. Many of these permits are for renovating existing properties rather than building new ones.
It’s also important not to put your home search on hold in expectation of these new properties. Construction projects can fall through at any point in the process. While you wait, home values in Marbella will continue to rise.
How to Start Searching for Real Estate in Marbella
As all these statistics show us, the Marbella Spain real estate market is strong and we can expect it to grow even more this year. If you want to make southern Spain your home or invest in the area, now is the time to get into the game.
If you’re considering buying real estate in Marbella, be sure to hire a real estate team that has expertise in the area. As with any city, Marbella has a variety of neighborhoods, each with their own attributes and flavors. You need someone who knows the market well and can steer you in the right direction from the start.
If you’re ready to begin shopping for real estate in Marbella, find out more about our Marbella real estate team and contact us to get started.