With the imminent arrival of 2016, the team at Marbella Unique Properties want to start the new year with a blog on our local real estate market during 2015 and what we believe 2016 will bring.
Selling property on the Costa del Sol, particularly in Marbella has arrived at a great point, the highest in over 7 years. The province has generated an increase in sales of 13% (a total of 19.154 sales – September 2015). Due to this, 2015 has been a great year for Marbella, there has been an increase in the number of new projects being launched to meet the buyers demands. This has given a greater emphasis on the design of the properties that are being built. Marbella hasn’t only been the focus for the increase in the property sales, as mentioned before the Costa del Sol as a whole has shown a great recovery in the market, as Malaga city has been awarded 15 new licences’ for large projects (aprox 450 properties).
Since the bursting of the housing bubble in 2008, sales have risen 13% in the province of Malaga, making our market just behind provinces such as Madrid and Barcelona. Naming Marbella as the jewel of the Costa Del Sol, sales have increased 18.6% (3.326 sales – September 2015) with other cities such as Estepona (1.474 sales). Malaga achieved 3.491 sales by September with an increase of 28%. In other areas, the increase was more modest with slight declines in certain cases. Mijas for example, sold 1.710 properties (5.2%), Benalmadena sold 1.390 properties (0.3%) and Torremolinos sold 975 (-10.5%).
The surplus amount of properties owned in Spain at the beginning of the economic crisis in 2008 was 1.200.000 properties. Currently that value stands at 462.000 (which is over 50% decrease) this is foreseen to continue to decrease an additional 24% in 2016 arriving at a total of 349.377 surplus properties. The increase of property and property prices in Spain is not homogenous, giving more importance to Malaga and Marbella in particular, due to them both being key points for the future of stabilising our real estate economy, helping increase the value of the National Real Estate Market. According to a study issued by Network Real Estate Consultants Qualified (RAIC) data from the National Statistics Institute (INE) migration flows must be taken into account, as the need for housing in Spain increases (which currently stands at 140,000 people searching for homes mainly in the Community of Madrid, this demand for property will help push the value of the Spanish property market.
Another factor that we have to consider that is showing a clear sign of improvement in the 2016 market is the banking sector behaviour and their availability. As Oriol Aspachs (director of the macroeconomics Caixa Bank Research) stated and quote: The adjustment in the housing sector is already made and is launching the upswing. Not only is the banking sector ready and prepared to finance this next property growth cycle, but they are doing it! The following months will begin to show the results, as prices and investments increase.
A section of the housing market that was not given enough importance in the past or seemed less important was the rentals section. The current recovery is based on various points, one is the holiday sector (which focuses on the Costa del Sol in particular is a secure investment). Firstly the sector stabilises, then it begins to recover, to follow is the rising of prices, buying investment property for rental is believed to be a very safe option. The rental market in Marbella is one of the basic necessities for local tourism, as you can see for on our website, a large variety of properties are offered with owners achieving an average of 2/3 months a year through short term weekly rentals.
Public investment has also been an important factor for example, creating comprehensive refurbished areas (ARI), these are most popular in the deteriorated areas of the cities. This will help the real estate sector to be able to begin to grow again at a good steady pace.
In conclusion, we forsee Marbella Real Estate Market projections for 2016 to be very positive for both the purchasing and the rental markets, with the arrival of new permits to build homes or refurbish historic buildings which add great value to cities. With the economic recovery, in addition to public and foreign investment, as the force accompanying the 2016 national investment, there will be a new turning point when talking about the real estate market, and Marbella Unique Properties is pleased to offer our services and expertise for any questions you may have. Contact us…