Marbella has seen a larger than expected number of tourists in the first quarter of 2012 thanks to an overall trend to holiday in Spain again and also thanks to tourists from Middle Eastern countries taking an interest in the resort.
Marbella’s appeal comes as no surprise to the sales and marketing director of one of Spain’s leading house builders. Marc Pritchard of Taylor Wimpey Espana is not the only one who thinks Marbella has a winning combination of great lifestyle, amazing climate, excellent amenities and first rate property to offer.
Being sandwiched between mountains and award-winning beaches, the resort has something for everybody to enjoy. The climate remains sunny and warm long after the main throng of tourists has left after the summer and high-spec, quality builds in the area guarantee homeowner satisfaction.
The region’s tourist board envisages that the number of tourists will rise by 37 per cent in 2012 compared to the previous year. Some of these travellers will undoubtedly be potential property investors from China, Germany, Scandinavia, Russia and the Middle East. Marbella’s year-round attractions, from amazing golf courses, tennis courts and beaches to the designer fashion outlets and chic boutique hotels at the Golden Mile, should not detract potential buyers from the charms of property located in the Old Town, Marbella’s historic heart.
A recent article in The Telegraph reiterated the many attractions of life in the Old Town, where residents still know how to enjoy the Real Spain, namely the character and excitement of a truly Hispanic lifestyle in one of Europe’s finest seaside resorts.
While the modern developments by the seafront may not have the character, charm and “personality” the historic dwellings have to offer, there is plenty of choice among the building styles of the various urbanisations. At the Costa del Sol there may still be a surplus of distressed, empty housing stock available at the present time, but things are expected to change rapidly over the remaining months of 2012.
The Royal Institution of Chartered Surveyors believes that demand will soon outstrip supply in Spain’s prime locations, of which Marbella is certainly one of the very best. Their latest Global Commercial Property Survey predicts a surge of international investors will snap up cut-price bargains within the next three months.
Marbella is not one of the locations where a great deal of distressed property can be found though. Many cash-rich local investors have patiently waited for several years for real estate prices to come down – they are now buying up apartments, town houses and villas in prime locations with the view to letting them as holiday rentals until such time as the property market picks up again and sufficient capital growth will bring its reward.
British buyers have yet to make up their minds, if a purchase should be made now or later. At present Spanish interest rates are very low, the tax incentive of just 4% IVA on new builds still holds and Sterling is performing so well against the Euro that gains of 1.20 euros against the pound can easily be achieved. This makes buying a property in Marbella a lot cheaper for buyers from Britain.
Jon Ainge, the director of International Property Success, explained recently how Spain had become a great target for foreign investors, citing regions like Murcia as having wonderful future potential with regard to tourist numbers.
Buying property in Murcia with a view to holiday rental income is a long term strategy, as the new Paramount Studio theme park won’t open to the public until 2015. Marbella property on the other hand promises instant high rental returns from holiday lettings, even if the capital outlet is considerably higher to start off with.
Liz Rowlinson, editor of A Place in the Sun magazine, reminded her readers the other day that being realistic about potential rental income and capital growth was key to getting calculations right, when assessing the viability of a property purchase. Running costs and taxes also have to be included in the calculation, before a decision to buy should be made.