Jump to content
House Price Crash Forum
benwes

Marbella And Costa Del Sol

Recommended Posts

Just wanted to show what is happening in Spain's Costa del Sol. There are quite a few similarities between this market and the some of the discussions I have read on this forum. It seems we are about 12 months behind here. Certain areas such as Malaga city are still experienceing extremely strong growth although its safe to say that it is late stage market conditions. The home market is now the most dominant group on the Costa, the Spanish are taking advantage of the extremely favorable finance schemes that have developed quickly over the last year and are becoming increasingly higher risk (2 years ago it was impossible to get interest only). Foreign investment has dropped although its still fairly high. Expats are still buying but the investment and speculation boom has now tailed off significantly. Most of the proeprties that are being sold are new build high spec properties just prior to completioin, cheap high rise apts in urban areas and the the urbanisations that have retained their charm over the years (Las Lomas de Marbella Club being a really nice example). Prices have certainly deflated on the resale market, I would estimate by a good 4 to 7% on average.

Rental market seems to be booming but the gov is introducing new legislation to keep prices competitive. We are waiting to see how effective this is.

There were around 4000 real estate agencies on the Costa (some good some bad and some too horrendous for words). Many are now struggling and a few have shut down operations all together. Tourism, construction and real estate are the coast's 3 major industries for the local economy so a slow down is goign to have a particulalry pronounced effect in the short term.

Property prices have been particularly affected by the years of specualtion buying and contract flipping. This year some 200000 units will complete, and for those that can't resell it will incur the xtra taxes and costs of signing for the title deed (approx 11% in Spain).

Interesting times ahead I am sure. Watch for new updates coming soon.

Share this post


Link to post
Share on other sites
Just wanted to show what is happening in Spain's Costa del Sol. There are quite a few similarities between this market and the some of the discussions I have read on this forum. It seems we are about 12 months behind here. Certain areas such as Malaga city are still experienceing extremely strong growth although its safe to say that it is late stage market conditions. The home market is now the most dominant group on the Costa, the Spanish are taking advantage of the extremely favorable finance schemes that have developed quickly over the last year and are becoming increasingly higher risk (2 years ago it was impossible to get interest only). Foreign investment has dropped although its still fairly high. Expats are still buying but the investment and speculation boom has now tailed off significantly. Most of the proeprties that are being sold are new build high spec properties just prior to completioin, cheap high rise apts in urban areas and the the urbanisations that have retained their charm over the years (Las Lomas de Marbella Club being a really nice example). Prices have certainly deflated on the resale market, I would estimate by a good 4 to 7% on average.

Rental market seems to be booming but the gov is introducing new legislation to keep prices competitive. We are waiting to see how effective this is.

There were around 4000 real estate agencies on the Costa (some good some bad and some too horrendous for words). Many are now struggling and a few have shut down operations all together. Tourism, construction and real estate are the coast's 3 major industries for the local economy so a slow down is goign to have a particulalry pronounced effect in the short term.

Property prices have been particularly affected by the years of specualtion buying and contract flipping. This year some 200000 units will complete, and for those that can't resell it will incur the xtra taxes and costs of signing for the title deed (approx 11% in Spain).

Interesting times ahead I am sure. Watch for new updates coming soon.

Exactly the same on the Costa De La Luz (Cadiz) lots of unsold new builds and the EAs are empty. When it pops here it will be big time.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 341 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.