Every winter I’m reminded of just why Northern Europeans fell fond of the Costa Del Sol to begin with. A beautiful setting, fabulous beaches, a relaxed lifestyle and 300 days per year of sunshine are a very good pull indeed.
For this reason the fundamentals of the South of spain property market will be strong, despite the banking crisis of 2007 and it is affect on the overseas property market.
Real estate agents in Spain say that recently investors from Britain have been creeping back into the market. Inquiries are up, primarily from cash-rich buyers or people who sat on the fence with the peak of the market and still have watched prices fall from other peak.
People certainly held back 2009, but these people recognise that they cannot put their lives on hold because of the recession and they cannot put off that retirement date, so might be getting on with their lives. Demand continued to be relatively weak through 2010, but that pent up demand is feeding in a recovery in 2011 in both number of sales expenses. It’s not just the British who’ve returned to the market, hunting for a bargain, the strength of the German economic recovery has grown the number of Germans looking to buy property and it seems Russians that are the biggest buyers of. A survey published by Savills International learned that the overseas second-home information mill likely to be characterised by cash rich, lifestyle property investors keen on bargain prices.
As always it is the upper end with the market that has delayed best, prices are normally 15% down on their peak, but you are beginning to tick up.
If wisdom says that the more upscale end in the market makes the best investment opportunity, then logic says that somewhere like the Los Flamingos Urbanization will be the ideal choice. It advantages from 9 golf courses and exclusive housing developments spread around the 5 star Ritz Carlton Villa Padierna Hotel and Spa. Additionally there is a planned beach club and numerous other sporting facilities. Chosen by Americas first lady Michelle Obama on her Summer vacation in 2010 the event has an exclusive, classy feel, together with the peace of mind that comes from gated security.
When the price tag of a number of the completed villas on the market for between 2 and 5 million Euro will put you off then consideration needs to be given to buying a plot of land in a good location inside them for hours your own villa constructed. Provided you are careful that all necessary permits are obtained this certainly will prove a great Marbella villa investment, whether you are looking to move to the sun permanently or make your dream home in the sun.
With such strong fundamentals and returning demand it can be highly likely that prices will quickly increase. Even if property prices just keep pace with inflation they’re going to have to rise by 5% annually. If you have a dream of your home in the sun, or are seeking a decent return on your investment portfolio you’ll want to carefully consider whether you are missing out and will look back later on on what was a great opportunity missed.