The decline of the pound versus Euro exchange rate, the EU referendum and almost three general elections in Spain, means that there have been several factors going against the Spanish property market in 2016. However, as always, Marbella has continued to maintain a steady property price increase and the predictions for the Marbella property market in 2017 look extremely positive.
In spite of the political and economic turbulence experienced this year, Marbella has been able to hold its own and here’s why.
“Marbella is a market unto its own,” says a local property source. “We have gone through ups and downs before and compared to other coastal resorts Marbella has always fared well. This year is no different.”
The Brexit vote which took place in the UK in June has without a doubt wobbled the property market in Marbella somewhat and combined with a lack of Government in the rest of Spain, buyer uncertainty has definitely been present. However, predictions for the Marbella property market in upcoming years, particularly in the surrounding areas of the New Golden Mile, San Pedro de Alcantara and Benahavis, portray 2017 to be an exceptionally good year for the buying and selling of houses.
A Boom In Properties On The Outskirts Of Marbella
People are always attracted to beachside properties, or those that offer breathtaking views of the Andalucian countryside. That said, not everyone can afford to buy a property in a prime location such as Puerto Banus or The Golden Mile of Marbella. This is exactly the reason why 2016 has seen potential purchasers flocking to areas such as Nueva Andalucia and The New Golden Mile as they are able to acquire a stunning property that meets all of their requirements, without such a hefty price tag. And now, with fashionable restaurants, supermarkets and bars popping up all along the coast, there is no longer just one central hub that you need to be close to in order to enjoy Costa living at its finest.
Sales And Property Price Trends
After property prices in Marbella reached an all time low in 2011, sales started rising consistently, recording year-on-year gains that have since surpassed double figures. At the start it was mostly driven by the luxury end of the market and in contrast, heavily discounted ‘distressed’ properties and bank reposessions located outside the Marbella area on the other. In recent years the property market gradually broadened its scope from the top end of the market that heavily relied on Russian buyers to one largely dominated by mid to high level homes drawing in cash buyers from European countries like Holland, Belgium, France, the UK and then of course the Middle East and above all Scandinavian countries, where the Norwegians led the way. These days buying motivation is no longer driven by discount prices, but rather the new buyers are enticed by the lifestyle and prestige of this region, and while still keen on value for money are now willing to pay for quality and location. The result has been a gradual increase in property prices, one that is forecast to continue rising based on these latest predictions for the Marbella property market.