Marbella Property Market improving

It’s far too early to talk about a boom in Marbella’s property market, although some estate agents are already chatting about exciting times ahead. However, positive signs are emerging everywhere, from an abundance of new estate agencies that have opened in the last 12 months on Marbella’s Golden Mile to the shoal of realtors with toothy smiles who have beached themselves on Puerto Banus’ shores to snap at the heels of wealthy investors.

Renewed Confidence in the Market

Fresh demand from foreign buyers has also created new employment opportunities elsewhere along the Costa del Sol, where estate agents are hiring once again to cope with the number of enquiries flooding in. Business is brisk, with more viewings arranged than anyone dared to hope for just half way through 2014.

Even developers are getting “cocky” again and demand the full asking price rather than let buyers dictate the price and terms as they would have done just 6 months ago. Off-plan properties might not sell like proverbial hot cakes, but they do shift within less than two months.

Despite the heavy price tags, some of Marbella’s most expensive and exclusive areas have seen far brisker sales than districts were an abundance of second hand homes and cheaper new properties are still languishing far longer on the market.

Growing Enthusiasm

So where does this demand spring from – it can’t be an improved Spanish economy that is sending property buyers through estate agencies’ doors?

It appears that many people are fed up with the tumultuous debates over pensions and strikes and high cost of living and retirement plans. They have been watching the Spanish housing market and have decided now is as good a time as any to make a move and buy a retirement home. Prices are not likely to fall much more – or are they?

Prices are levelling out

Prediction made so far assert that Spanish house prices are still going to re-adjust downwards for another year before finally hitting rock bottom. While this is true for the overall market, it is not necessarily so for hot spots like the Balearics, where quality and luxury homes are becoming scarce – just like in Marbella.
 
But the downward trend of price decreases is also slowing. According to Tinsa, a valuation firm, Spanish house prices only reduced in price by 4% in May, in comparison to a loss of 10% in May the previous year.

With higher demand for a certain type of property comes a tightening of the market and the difficulty of sourcing high-end housing stock. It becomes that much harder to find real bargains, especially among the high-specification property developments, which are typically located in prime areas by the sea or overlooking golf courses.

Building from Scratch or choosing a Fixer-upper?

Plots of land are finally attracting buyers again - buyers who have combed the listings and have failed to find their dream home in Marbella are now considering building from scratch or doing up an older property.

In certain parts of Marbella, in Elviria at the eastern edge of the city, second hand properties can be amazing bargains, especially for those who don’t shy away from applying some DIY skills or project-manage larger building projects themselves.

Registering with several estate agents and looking through the largest property portals online is a good way to gauge the market for the part of Marbella you are interested in. Building projects can be lengthy and end up costing far more than budgeted for.
 
With so many second hand homes on the market – many of which need only minimal decorative upgrading – it’s a good idea to keep an open mind during viewings and to imagine what the property could look like after a little money and TLC have transformed it into a dream home of the 21st century. Eastern Marbella’s Elviria or Cabo Pino, Estepona and Fuengirola are good places to start a property search for second hand holiday homes at the Costa del Sol.