Finally the day has come that you can afford yourself a beachfront property in Marbella or any other suitable Costa del Sol property. You’ve been working hard for year after year and now your finances are looking promising enough to take the plunge. The next question is: where to invest?
In many Northern European countries the prices are still high and keep rising even after the collapse of Lehman Brothers in 2008. In some countries the prices have risen steadily in the last five years, and in Norway prices have even risen by as much as 34.4%.
Spain, however, was not one of those countries. It’s no secret that the global recession was particularly unkind to Spain. After the financial market crash property prices plummeted in Spain, as they did in many other parts of southern Europe. In Spain prices fell by over 30%, while in many resorts by as much as 70%, for this reason it is a good idea to get in contact with our real estate agent Costa del Sol and visit property for sale in Marbella, especially when you can find a good opportunity in apartaments for sale in Marbella centre.
Will Spain be the best place to buy property?
So with all these years of falling land prices, will Spain be the best place to buy property? Is now the right time to invest in that beachfront property in Calahonda, that beachfront property in Marbella, that poolside villa in Estepona or in Costa del Sol property in general?
In the last year things have started to change in the Spanish property market, and for the first time since the crash prices have started to rise again.
Property prices – for Costa del Sol property in general or a beachfront property in Marbella – in the last quarter of 2015 were 4.2% higher than the previous year, according to data from the Spanish Government’s central statistics unit. This suggests that prices are beginning to rise, although an overall trend is yet to be confirmed.
Experts in the property industry have long been predicting a growth of interest in Spanish property, and perhaps this has finally come about.
Data from the Ministry of Development published last month showed that residential property sales in Spain in 2015 exceeded 400,000 for the first time in five years (the total figure stood at 401,281).
In addition to this, the Spanish notaries office reported that property sales in January of this year were 26.6% higher than January 2015.
While the costs are low, the benefits of Spain are high
So with all these rising sales figures, has the time to buy property in Spain already passed by? Not yet. Prices are still relatively low, along with a low cost of living and, of course, a high standard of living that includes a near perfect climate, a world-class cuisine and access to a high standard of healthcare. While the costs are low, the benefits of living in Spain are high.
One can see that Spain and Spanish cities rank low on most cost of living indexes, such as that of Expatistan, in comparison to other countries in Northern Europe. The euro has been strengthening in recent months but this is predicted to come to an end in the near future. Also, in the context of the euro weakening over the last seven years, buyers from outside the eurozone are still in a good position to bring money into Spain.
But many others from outside of Spain are beginning to notice this, too. Property sales to foreigners made up 17% of total sales in the last quarter of 2015, which was an increase by 10% on the previous year. In some coastal areas the proportion of the sales made by non-Spaniards is much higher: in Malaga 29.3% and in Alicante 50.6%.
Increased interest in the Spanish market
Among this increased foreign demand, the highest proportion of buyers have been the British, followed by the French, the Germans as well as other European countries.There has also been increased interest from non-EU countries, especially since the introduction of the ‘Golden Visa’ scheme in 2014, under which foreign buyers from outside of the EU are offered Spanish residency in return for investing more than €500,000 in Spanish real estate. This has resulted in increased interest from Russia, China and Middle Eastern countries.All this points to one thing – the property market in Spain is bouncing back fueled by new-found interest. It also means that the number of those who are thinking of buying property in Spain is rising.
Things to remember
For those who are looking to find a home in Spain – a beachfront property in Marbella or a Costa del Sol property in general – at the best possible price, and with the security that they could expect in their home country, there are a number of things to remember.
Most buyers will need to find a good mortgage broker in Spain. While it is possible to use a mortgage broker from your home country, it is usually advisable for financial reasons to find a Spanish mortgage broker.
Foreigners buying a property in Spain will need a financial number, which they can obtain from a local police station by using their passport. This can usually be done on the arranged day for those from EU member states. Aside from this there are no restrictions on buying property in Spain for EU citizens.
Most importantly, buyers in the Spanish market will almost certainly need to find themselves a reliable real estate agent who can give high quality advice on the properties available, and show them a selection of dream villas and apartments in the best locations, for example villas for sale on the Costa del Sol like Golden Mile property for sale.