Marbella Properties – Is It Time To Invest?
Investment in the real estate market of the Costa del Sol
Every winter I remember why Northern Europeans fell in love with the Costa del Sol in the first place. A beautiful setting, fabulous beaches, a laid-back lifestyle and 300 days a year of sunshine are a very strong draw.
That is why the fundamentals of the real estate market on the Costa del Sol will always be solid, despite the banking crisis of 2007 and its effect on the foreign real estate market.
Real estate agents in Spain say investors from Britain have recently returned to the market. Inquiries have risen, mainly from cash-rich buyers or those who sat on the fence at the peak of the market and seen prices drop from its peak.
People certainly held back in 2009, but these people realize that they cannot put their lives on hold due to the recession and cannot postpone their retirement date, so they move on with their lives. Demand remained relatively weak during 2010, but that stifled demand is driving a recovery in 2011 in both the number of sales and prices. It is not just the British who have returned to the market for a bargain, the force of the German economic recovery has increased the number of Germans looking to buy a property and it seems that Russians are the biggest buyers of all. A survey published by Savills International found that the overseas second-home market is likely to be characterized by cash-rich, bargain-priced lifestyle real estate investors.
As always, it is the upper end of the market that has held the best, prices are on average 15% below their peak, but are starting to rise.
If wisdom says that the most exclusive end of the market is the best investment opportunity, then logic says that somewhere like the Los Flamingos Urbanization could be the ideal option. It benefits from 9 golf courses and exclusive developments scattered around the 5-star Ritz Carlton Villa Padierna hotel and spa. There is also a planned beach club and many other sports facilities. Chosen by the first lady of the United States, Michelle Obama, for her summer vacation in 2010, the development has an exclusive and elegant feel, along with the tranquility that private security provides.
If the price of some of the finished villas on the market of between 2 and 5 million euros is enough to put you off, then you should consider buying land in a good location and building your own villa. As long as you are careful to obtain all the necessary permits, this should prove to be a great investment in a Marbella villa, whether you are looking to move in the sun permanently or build your dream home in the sun.
With such strong fundamentals and a return in demand, prices are likely to start rising. Even if house prices keep pace with inflation, they will have to go up 5% annually. If you dream of having a home in the sun or are looking for a decent return on your investment portfolio, you should carefully consider if you are missing out and look back in the future at what was a great missed opportunity.
My recommendation would be to book a flight, get out, do your research, and make an informed decision.