2017 has come to an end and has undoubtedly been the year in which Spain has managed to stabilize its markets and prices with progressive increase, also reflected in the number of annual sales. We welcome the New Year which without a doubt offers great promise. Real Estate hot points on world maps usually show the most active areas of Real Estate in each country in accordance to a variety of characteristics and Spain is no different. Marbella Unique Properties would like to summaries points that are forecast to mark the Spanish property market for 2018 and more specifically that of La Costa del Sol.
We find ourselves at a pinnacle with regard to the real estate market, a decade after the markets bubble burst deriving from the International economic crisis. The Spanish market is reactivating again, taking into account that not only are sales or rental being made exclusively on residential properties, but also investments are made in shopping centres, warehouses and offices which are foreseen to reach record heights lasts seen in 2007. Banks have partly fostered the road to recovery, disposing of seized assets while attracting foreign buyers. Prices continue to rise for another year; housing prices and the Spanish market continue to be more attractive than many neighbouring countries. Basically, it is the year where all the pieces are falling into place.
With the prices as a starting point the market is in a very good situation, and the best example of this is the positive evolution they are having, which is mainly being felt in new construction. The average value of new build property transactions in Spain is 0.78% higher than the maximum value recorded prior to the crisis. The market is strong and clear proof of this is the 100,000 homes that will begin construction to meet the demand of buyers. This can already be seen on the Costa del Sol, in areas such as ‘The New Golden Mile’ of Estepona, Marbella East, Nueva Andalucia, Benahavis and even Mijas which are becoming stronger areas with new housing developments offering great quality and benefits. As for the rest of Spain, its hot points on the map concentrate mostly on transactions along coastal areas, on the islands and in the area of Madrid, as well as the construction of new homes in the leading, which more and more are functioning as fundamental economic engines for the national economy. Marbella is one of the most important Spanish economic property machines.
A point to highlight in this section is the ‘new housing’ technicality, referring to recently built properties. The Costa del Sol and in particular Marbella, is one of the areas where properties are considered reference points of the city, emblematic apartment complexes within Marbellas history including places such as Playas del Duque and Los Granados in Puerto Banus, the Don Gonzalo building in Marbella, villa areas including Sierra Blanca on the Golden Mile or La Zagaleta in Benahavis and all beachfront properties. These areas on the Costa del Sol have managed to achieve a perfect combination satisfying demand of all types of clients, consistently offering high quality properties as demand continues to grow. These achievements enable price increases for 2018, recent years prices have maintained a rise without being alarming, but progressive. A positive point since it reflects price trends rising at a normal level, responding to strong demand for properties found in the leading Spanish cities such as Marbella, coupled with buyers being well informed helping establish a solid market generating a good environment to settle the local and national economy.
This in mind, there is a positive feeling with regard to future prospects for the Spanish property market and the Costa del Sol’s market forecast is more than promising, thanks to its economic factors and also to the quality of life that it continues to offer. Global economy is prospering, and Spain continues to maintain a good pace, growing in sales, in tourism, opening new doors and opportunities. We look forward to hearing from you with any questions you may have. Our office is always open.