Reasons for the increase in the housing market in Andalusia

Asesoría Inmobiliaria
Sotogrande property in Spain

There is nothing new that the housing market is again on the rise in Marbella according to the real estate expert, Ignacio Acosta Sorge, we had already noted in the last three editions of the Market Report. The crisis is over. Even entire national real estate market recorded in the last quarter of 2014. Price increases of 2.2%.
The big news in Marbella, however, that sales volume in 2014, an increase of over 28% compared to last year recorded an increase of almost 77% compared with the turnover in 2011/2. That is 12% more than the sales volume in 2007, shortly before the crisis. While the Spanish economy had to suffer the effects of a severe economic crisis, the demand for real estate in the area of Marbella and surrounding areas since 2012 constantly.

Property prices are still well below previous peaks

The housing crisis in Marbella is actually finally overcome, at least with regard to sales volume, which has increased steadily over the past three years. But with regard to prices, the crisis of sellers is not really about: Prices remain 15-25% below the maximum level, even in the most consolidated areas.
In less consolidated areas prices are even lower, ie, in the lower part, and here you are sure to have a time bargains paste. Note that objects in the upper price range between 1.5 to 2 M € are not always replaced by property with similar characteristics, indicating a good price in a possible lack of quality objects. we recommend be attentive to any offer cosiga in intgernet as can be misleading, since scammers use fraudulent emails and websites to roberles is why we recommend the system Phishing scams.
This, together with increased demand has caused many homeowners have increased their price expectations, not happened for years. Since early 2015, the agency has received three or four times a week increases prices; same, but there are other owners to reduce their prices because they finally realize that their properties were still expensive despite the improvement in the market situation.

The reasons for growth in the property market

Various types of buyers. The real estate market and the economy in Marbella do not depend heavily on the national economy from. At least 85% of buyers of a property in Marbella come from outside Spain, mainly from other European countries, where the economic situation compared with Spain is relatively strong and growing.
Although Spanish buyers due to the severe crisis in the country as good as I was not present, this circumstance was more than offset by the foreign market.
Pessimists say anything. Thousands of potential buyers have waited for years for the right time to buy in Marbella property and therefore to increase their standard of living. , The news that the crisis is over in the property market in Marbella has meant that now even those who believed more tenaciously in the persistence of the crisis, quickly negotiated before prices rise sharply again. Thanks to the annual increase in sales in Marbella, fear to take risks when buying property has dissipated at current market prices.
A weaker euro. The weakness of the euro is an additional incentive for buyers from outside the euro area, for sale in Marbella. The pound, for example, has increased in value last year by 14% and not reach as high as from 2002. Even compared to the US dollar level, the euro is not as weak as from the 2002. the Swiss franc, which was updated in 2014, compared to the euro is also extremely strong.
As before, low mortgage rates. Interest rates at a record low, coupled with the strong competition prevailing among Spanish banks lead to increased motivation of buyers who want to carry out a mortgage. Typical variable rates of more than 20 years, from April 2015 have Euribor (nominal rates) with a + 1.70% and fixed interest rates of 2.75%.

Relatively high yields compared to other types of investment, the rate of return on bank deposits, especially for customers in the US dollar and the euro zone, so low (in some even negative, as in Switzerland) is that many people now turn to other types of investment, but as means to bring not have the same liquidity for higher returns. Within this large group many opt for an investment in your lifestyle, combined with a reasonable time of their investment in real estate, and the pace of this way to kill two birds with one stone. We recommend you read our next article on how our real estate expert Ignacio Acosta Sorge warning Internet real estate scams.
The safe zone is equal to the safe investment. Marbella is considered safe, quality community within the European Union, a fact that is not true for many other places. There are hundreds of newspaper articles that have been published in the last six months and have also been reported throughout the country on the surprising recovery of Andalusia and general signs of improvement.

Tourism statistics 2014 reached record levels

It is well known that in resorts like Marbella, tourism is the main source of good real estate clients made. In this context, it includes the following:
Tourists opt for Spain. According to the annual statistics of the Ministry of Tourism, Spain has beaten his record and in 2014 received 64.9 million visitors from around the world, which is 7.1% more than in 2013. So now Spain is in France and the USA .S. third most visited countries in the world. The Spanish Prime Minister Mariano Rajoy announced at the opening of Spain Global Tourism Forum on 27 January 2015 that tourism now constituting 12% of the Spanish GDP.

According to the Statistical Office 2014 Marbella broke its previous record of 2006 in terms of number of hotel nights, which is based on a total of 2,569,125. Of course, this does not include tourists who spent their stay in the apartments; here you can expect at least another 25%. The hundreds of thousands of people who usually referred to as “residential tourists” (tourists who own real estate, but only temporarily live here), are not included here.

Spanish buyers are not yet fully benefit from the market recovery

It will take some time before one can call the recovery of the property market in Marbella rivals because it still lacks an important component: the return of the Spanish buyer. These were due to the recession as absent as well. They were the basis of since its inception and until 2006 had a market share of 35% easy.

Today there are less than 15%. We estimate that this will not be longer than other 2 to 3 years to be, but I would also mention that the process has already begun, how can an increase of 20.5% in the Spanish tourism in 2014 in Marbella after reading this during years was very warm. These figures were published by the municipality of Marbella beginning of 2015. There are also many other signs that the Spanish economy will recover faster than expected by many according to our real estate adviser, who has worked for more than a decade of experience

Marbella is a favorite of foreigners to invest in property when

This southernmost point of Europe, offers the best climate in the Mediterranean. The property in Marbella enjoyed a reasonable construction policy and farsighted, which was operated by the founding fathers and the first builders of more than 60 years ago. Among other things, this policy was characterized by low volume and low construction density, when compared with concrete jungles of most other resorts in Spain. These factors and excellent communal facilities, security, good infrastructure, more than 40 golf courses within 20 minutes drive, tennis clubs, many other activities including 3 marinas and restaurants make Marbella is the only resort in the Mediterranean Sea where you have a season throughout the year, including the peak summer season, the transition period in spring and autumn and winter quieter. For these reasons, Marbella attracts people from all over Europe and worldwide.

A new era for the growth of Marbella referring to city today is not an important conclusion: Almost everyone who has observed and evaluated the development of this area for several years, he believes Marbella currently stands at the beginning of a new golden age. If all other factors remain the same, this new era will last for many years.

The real estate market in Andalusia

The so-called market adjustment in the housing market is mainly due to the Costa de la Luz recognizable. In particular, in the province of Cadiz, the property prices have fallen more than 12 percent in recent years. Even within the province of Granada, prices have fallen to the same extent. In Sevilla, prices are significantly higher, and the average price per square meter is more than 1,650 euros. Therefore, the province of Seville is in the current national trend, as in Spain, the average price per square meter is 1,630 euros (2014). Who wants to buy especially favorable? You can acquire real estate affordable in the outlying areas of Andalusia. Therefore, the price per square meter in Huelva are fallen below 1 300 euros, and Almeria prices are below 1 400 euros.
In the Mediterranean, the Costa del Sol, real estate prices are much higher. But even in this case, price cuts are felt and a house with a pool that already offered for 500,000 euros. In the luxury segment, there are some places still oversupplied and buyers can push prices there. The real estate experts predict further price reductions in the property market in Andalusia.

The real estate business according to market observers

Plummeting prices in Spain in crisis have attracted the interest of foreign buyers. But only the simple documents and simple objects lose none of their value, the best places are more expensive again. Spain hunter-gatherers go.
And they are greedy. From Denia to Alicante Market Report of foreign observers, smelling the bargain. “Every day in our phone calls from people who have already picked up on our website for a house, but just want to get on the plane, when the price has been reduced by 25 percent,” says Andreas broker Sheikh from Denia.
But the hope of an easy prey misleading. Sheikh warns against too high expectations. “Very few sales are dealing with the banking crisis.” It seems at first glance sees everything clearly: Anywhere in Spain, real estate prices have plummeted. According to National Institute of Statistics of square meters of housing was the summer average of 30 percent less value than five years ago. Only in the first quarter of 2012, prices fell by 12.6 percent  faster than ever since the crisis erupted according to the website information yourpropertyinspain.com
Because banks have to pressure the EU this year clean up their books and get rid of real estate loans the breakdown of value estimated at 85 million euros. The Spanish National Bank anticipates from 2013 with relaxation. And as financial analyst pessimistic Borja Mateo even predict the end of 2014 the price plummets. But: In 2011, foreign investments, according to the Bank of Spain have increased by 27 percent compared to last year  with nearly 5 billion euros in sales.

Drafted: AV

Word count: 2071

Main sources:

properties-for-sale-in-spain.yourpropertyinspain.com/spanish-real-estate-market/buying-a-property-in-spain/

euroresidentes.com/euroresiuk/buying-property-spain/spanish-real-estate-market

coronadoresidence.com/areas/Andalucia

andaluz.tv/news/new-spain-international.php?idArt=20243&url=spain

Secundary sources:

callumswanrealty.com/blog/262-marbella-real-estate-market-returns-strong-growth

issuu.com/andalusia/docs/asn0116realestate

properties247.co.uk/egypt-2/why-invest-in-sharm-el-sheikh/

domasocal.com/areas/Andalusia

Contribution of reader: All the information you need to know the market of properties in the region of Andalusia in Spain

5 comments

  1. Phillip Adam Post author

    Very good this page, interesting insight to see the housing sector here in Spain, a good prospect for the real estate market is estimated

  2. María Antonieta Post author

    Excellent article, very good information.
    I’m looking to invest in the Costa del Sol, this is a good time

  3. Jill Peter Post author

    Thanks for all the tips and data. Good information, excellent article, can you tell me what would be the best time to buy a house

  4. Julia Smith Post author

    I was looking for information, thank God I found this site. Excellent article very good content. Thank you for your advices.

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