Home Sales Expected To Pick Up In Marbella
The last quarter of last year saw a positive end to the year with a flurry of international buyers taking advantage of falling prices and a reduced VAT rate on new properties in Marbella.
A survey has revealed that demand for residential property in Marbella and its surrounding areas is expected to pick up in 2013. It has also stated that all sectors will move out of a broader downturn by 2014. Property expert who have been working in Spain for many years believe that there has been an increase in sales to overseas buyers. When full year figures are available we expect them to be 20% up on 2011.
Another interesting aspect of the survey is that it predicts that demand for commercial property will decrease over the next few years. Experts put this down to people opting to shop online as opposed to going to an offline store. While demand may be on the rise, there may not be enough properties to meet this demand. Due to this, properties can sell very quickly. Those who want to buy property in areas like Nueva Andalucia, The Golden Mile and Puerto Banus will need to make up their mind very quickly after viewing a property. Those who leave it too long will find that the property is snatched up by other buyers.
Financial experts believe that these survey results mean that people will need to change their approach when buying residential and commercial property. Families will need to act faster than normal when they see a property. Businesses on the other hand will need to work out whether leasing a building is profitable. House price and sales expectations for the next 12 months also improved in line with an increase in the number of potential home buyers registering with estate agencies across the coast.
The higher end of the market also seems to have performed well and at the lower end of the market what are regarded as bargain prices are attracting buyers, especially those with cash as getting a mortgage in Spain is not easy. Property expert who have been working in Marbella for many years believe that there has been an increase in sales to overseas buyers. Much of the unsold stock will eventually be bought by domestic buyers but with unemployment predicted to remain at current levels or higher through 2014 it will be a long, slow process.
The number of mortgages granted during 2012 was about 35% lower than 2011, falling for 30 straight months, although there is some growth visible in areas that attract the overseas market, such as Málaga. Also mortgage tax relief has been abolished and VAT on new homes goes up to 10% on 01 January. The temporary reduction of VAT to 4% has boosted the number of overseas buyers. Prices seem to be holding steady and offers are not as stupid as they have been. For example houses priced at €295,000 are selling for around €275,000, so sensible offers are being accepted but nothing insulting.
Marbella is still a very desirable area of choice for international buyers. There is even a shortage of the best homes in key parts of Marbella and Puerto Banús. Considering its perfect location, at the southernmost tip of Europe therefore squeezing more sunshine hours and higher temperatures out of the entire year than the French or Italian Riviera ever will, not to mention direct year round flight connections to Northern Europe, Russia, North Africa and North America, prices haven’t surged with such ferocity as they have on other elite coastlines.