Tinsa Report reveals Prices of Marbella Holiday Homes are rising

According to the latest study undertaken by property valuation firm Tinsa, Marbella is in third place with regard to price stability of holiday homes. In fact, Marbella’s holiday home prices are on the up and have risen by 4.8% over the last year.

The Costa del Sol resort has seen the lowest devaluation of house prices since the property market crashed at the end of 2007. Based on the first quarter of 2014, Marbella house prices have shown the greatest growth in the holiday homes sector with Marbella coming third in terms of per square metre price for Spanish property.

While the price of holiday homes in the rest of Spain has continued to fall, Marbella’s house prices have steadily regained ground and have now entered an upward trend. Sitges in Cataluña has seen the fastest recovery in Spain so far, with Manilva at the Costa del Sol being in second place before Marbella. Tinsa compared 2014’s first quarter figures with the results of the first three months in 2013. In total, the property valuation company studied house price fluctuations of 26 resorts in Andalusia, Cataluña, Murcia and Valencia.
 
Foreign demand for holiday and permanent homes in Marbella is the root for this change in the town’s property market. Tinsa’s report also revealed that the value of homes in municipalities dedicated to tourism activities fell far sharper during the crisis than in areas where the local economy was not fuelled by tourism. However, now these property markets are recovering at a faster rate.

Buyers still rank location as their foremost criteria for making a purchase, followed by quality of the built. The Spanish Costas were swamped with unsold housing stock, but where quality and good location went hand in hand, holiday homes have started to sell at a faster pace. Tinsa believes that this will continue to be a key factor for a recovery of the housing market.

According to Tinsa’s study, the Spanish real estate market has taken “an almost 180-degree turn” thanks to a huge number of international investors choosing to invest in Spain, and the upturn of segments of the holiday homes market is a by-product of that.

Greater Consumer Confidence

A modest recovery of the Spanish economy is partly responsible for an increase in foreign demand for real estate, but greater accountability of local authorities and a continued effort by the Spanish government to rectify old wrongs that have stifled foreign demand must also be named as factors.

A recent High Court decision to approve a scheme launched by the Andalusian government to regularise illegally-built homes has done much to disperse fears by foreign investors that corruption in certain Spanish municipal quarters would continue in the same way their predecessors dealt with planning legislation and building permits.

 
The scheme means developers and private individuals who built homes illegally must pay a penalty if they are to avoid demolition of such properties. The General Urban Land Use Plan was adopted four years ago to regularise illegal buildings.
 
Marbella Town Hall officials receive complaints on a daily basis from constructions companies and private homeowners, however, a local government spokesman said the scheme was clearly working, for nine court judgements so far had rejected appeals made from those ordered to pay their penalties or face demolition.
 
More stringent legislation for urban and rural planning and a determined effort to find a solution to the illegal homes crisis have convinced many foreign investors that Spanish authorities are tackling corruption in this sector hands-on and are willing to make uncomfortable decisions in order to stimulate the housing market and bring stability to prices.

Improved year-round Accessibility

Although owners Marbella homes have always had good access via Malaga Airport, airlines seem to have recognised the need to provide better transport solutions to cope with an increased demand for seats during the summer months.

Among the low-cost carriers Vueling have just introduced four new direct flights, now offering 22 direct flight routes to and from Malaga. The new Vueling routes link Malaga with Lanzarote, Mallorca and Oveido in Asturias, which is located in the north of Spain. From 19th April onwards Vueling will also offer direct flights from Malaga to Lyon in France.

In total, Malaga will see at least 5% more flight routes being offered this summer than last year.