The latest data published by real estate valuation company
Tinsa revealed a 42.6% decline for house prices in Malaga, which means
valuations in the province are now the same as a decade ago, with an average 12%
decline of Spanish property prices in quarter four of 2012. In Andalucía, where
most Spanish homes are sold, the average decline reached 12.5%.
Tinsa’s database records 4 million world-wide property sales
transactions, of which 25% refer to Spain. According to Tinsa, the year’s first
quarter started with an average fall of 9.2%, moved to a 11.5% decline in the
second and third quarters to finally decline to an average of 12% - thus
confirming a continuing downward trend.
Meanwhile, the travel sector has catapulted Spain into
second position in terms of world tourism after the USA. The “Brand Spain” is
still drawing in hordes of tourists from traditional markets such as Britain,
Germany, France and Scandinavia, but increasingly emerging travel markets like
China and Russia are also playing a role.
Last year Spain welcomed 57.9 million tourists, which means
investing in Costa del Sol holiday homes now, when prices are so low, makes
sound financial sense long-term. It’s not just the holiday lettings market that
is thriving thanks to new tourism markets opening up – long-term rentals are
also doing far better with rental yields up across the country.
Despite reports by rating agency Standard & Poor’s that
predicted Spain would lead the decline in European house prices, the country
remains as popular as ever with buyers from around the globe. The ratings
agency forecast a further drop in prices of 7.8% for 2013, but increased
numbers of enquiries from Russian and Chinese buyers suggest property investors
in Marbella, Estepona, Fuengirola and other resorts at the Costa del Sol should
eventually see a good return on their investment, as the country opens up to a
new kind of holidaymaker and buyer keen to take advantage of Spanish residency.
Affluent and with plenty of property purchasing experience
under their belt, Russian buyers in particular are looking for the kind of
luxury and prices Marbella property can offer them. For an investment of EUR
250,000 or less there is a huge amount of choice, from apartments to town
houses. Better still, Marbella still commands the kind of holiday rental fees
other resorts can only dream of – offering good returns with longer than usual
lettings periods.
Marbella’s comparatively close proximity to the ski resorts
of the Granada province, where the Sierra Nevada’s snow-capped peaks beckon
skiers and snowboarders from November to February to show off their skills,
makes buying a property in the resort a “no-brainer”. It takes less than 2
hours by car to reach the ski resorts of the Sierra Nevada, which makes an
apartment in Marbella a year-round lettings opportunity.
A 3-bed, 3-bath penthouse in Marbella may cost EUR 230,000
or less, but the weekly rental income can be between EUR 1,000 and EUR 2,000,
depending on proximity to seafront or front line golf developments and interior
finish.
2-bed luxury apartments in Marbella fetch weekly rentals of
EUR 1,200 to EUR 1,500, making them an excellent investment choice at an asking
price of EUR 150,000 or less.
Even in summer the area draws huge numbers of visitors, who
visit the star tourist attractions of historic Granada and its stunning palace
complex of the Alhambra as well as going hiking or climbing in the Sierra
Nevada National Park.
At the Marbella coastline holidaymakers and long-term
residents can enjoy numerous family amusement and waterparks, zoos,
horse-riding, tennis and golf courses, a beach life with paragliding and
surfing, sailing and fishing opportunities, not to mention hanging out with the
glitterati at some of the world’s most fashionable night clubs!
For people with an investment amount of just EUR 100,000 the
neighbouring resorts of Estepona, Fuengirola, Mijas Costas, Torremolinos and
Malaga itself offer excellent opportunities with smaller apartments costing as
little as EUR 65,000 or less.
For investors and those hoping to relocate to the sunnier
climes of the Costa del Sol, Marbella and its neighbours make an ideal choice
with real value for money properties.