Latest news in the Andalucian Property Market
Foreign buyers in Andalucia by Nationality
Each Spanish region attracts different foreign markets. The latest summary showed that the British are still a majority here in Andalucia, although much diminished due to Brexit and the weakening of the pound. After them come the Swedes and Belgians.
Buyers have become more sophisticated and demanding
As the incredible lifestyle of the Marbella area continues to spread, extending into surrounding areas such Benahavís, San Pedro de Alcántara and Elviria, new buyers are being offered a range of new build projects which are of a much better quality than in the past. We have also noted that buyers are willing to pay extra for fully refurbished re-sale properties that are in perfect, immediate move-in condition. Others seem quite reluctant to buy older properties and reform them, preferring to leave this activity in the hands of specialists in that sector.
Some homeowners are overly optimistic about their exit prices
Now that the market has strengthened again, even if it is somewhat slower than in the cities, there has been an overly optimistic approach among some second-hand sellers who have their exit prices so high that very few potential buyers show interest to view them.
Those owners who really want to sell within a realistic timeframe make sure they work with experienced agents who have a true knowledge of the market and are aware of similar properties that are sold or have sold and so they can jointly establish a realistic price and marketing strategy.
Delays in the issuance of building permits in Marbella and the benefit to Benahavís
Despite the good work being done by Marbella Townhall in many areas such as security, garbage collection, cleaning, roads, beaches, etc. there is a lot of land qualified as urbanisable under the 1986 General Plan, the Department of Urbanism, which grants building permits and which is suffering serious delays.
This has meant many developers are acquiring plots in the neighbouring municipalities of Benahavís and Estepona. In these localities the process is faster: building permits are issued after three or four months from the presentation of the project, while in Marbella this procedure can take more than a year.
Tourism continues to grow
The number of tourists in Spain increased by 10.3% in 2016 from the record hit in 2015, reaching another peak of 75.6 million visitors, of which 23.6% were British.
According to the local press, in 2016 arrivals at Malaga airport increased significantly, highlighting the vital importance of the province Malaga and the Costa del Sol in the tourism sector in Spain and Europe.
It is clear that Spain is benefiting from the uncertainty regarding security and terrorism that is being experienced in some parts of the world.
Is the market now on the road to full recovery?
The market is very active and has made it through the crisis of a few years ago. Newly designed developments are selling very well, and second-hand properties located in the most sought-after and consolidated areas are also moving.
However the big difference between the market today and the one before 2012 is that there is now enough demand for properties in all price categories and all types, so, selling a property today is basically a matter of price. When owners adjust the starting price to the right level and the properties are perceived as a good offer, the market responds almost immediately.
What does the future hold?
In the last three or four years we have seen that the “middle” season in the area ie. autumn and spring activity is lengthening. With a resident population of around 300,000 in the low season, bars, restaurants, hotels, golf courses and nightlife are remaining active for longer creating a year round season, unlike other Mediterranean tourist destinations such as the Balearics. This trend should improve the real estate market.
Marbella and its immediate neighbours are unique
In addition to its incredible climate, the areas of Marbella, San Pedro de Alcántara, Benahavís and Estepona have been very careful to limit the volume of construction and maintain large green areas.
These factors combined with continually improving infrastructure and services, high levels of safety, more than 40 golf courses within a 20 minute drive, sports facilities in general and fantastic restaurants make the Marbella region the best tourist destination in Europe.
At Capanes Luxury Living, we have a very positive view on the future of real estate in our area.
Contact us today for any advice about the current Andalucian Property Market, or if you need assistance with buying or renting a property in Benahavis.