Throughout the year we have been looking how the market is performing compared to previous years. Thanks to easier access to financing, a growing economy and an improved job market 2017 is turning out to be a pivotal year for the Spanish property market recovery. Demand for Spanish property remains high, the new mortgage market is very active and property prices are rising.
The first positive signs of general recovery started showing in 2014 and the market has been quietly growing from strength to strength in that time. Whilst this has been happening buyers from outside the country have also been growing in confidence seeing tougher regulations come in regarding off-plan purchases and this in turn is giving a real boost to professional developers who can now confidently build.
We have certainly seen an upturn this year in high quality developments and our customers are snapping up good deals on off-plan properties as buying in Spain still represents excellent value meaning that second home or retirement home, investment property or holiday rental you had your eye on still provides a fabulous opportunity.
Some 40% of property sales take place without a mortgage according to a well known national Property Index and many of the mortgages granted are now fixed rate meaning buyers know where they stand. Developers too, offer deals that mean stepped payments make buying off-plan properties more affordable.
Last month the Bank of Spain summarized the country’s housing market in a report forming part of its quarterly review. In some areas property prices have fallen as much as 45% from the boom time. Over the last three years the market has been gaining momentum and property prices in Spain have risen 16% according to the Bank of Spain.
During this time investment in Spanish housing has grown by an average annual rate of 1.5%. There has been an emphasis on responsible lending and this in turn is leading to a real confidence in the market that is sending a ripple effect from architects to developers, agents to buyers.
According to the World Economic Forum, Spain has held on to its crown for the second year running as most competitive tourism sector. Spain has long been the go to place for everything from package holidays from the high street through to attracting the rich and famous.
The group’s Travel & Tourism Competitiveness Report 2017: Paving the Way for a More Sustainable & Inclusive Future, which covers 136 economies, grants Spain a top score of 5.4 on 7 on its Competitiveness Index, ranking higher than France and Germany who fell second and third respectively.
The report is published every two years and looks at infrastructure, security, and rich cultural resources. Spain has been climbing up the ladder to take the title pretty quickly as in 2011 it ranked 8th and 2013 it ranked 4th. In 2015 Spain took the crown and has now reclaimed it for a second year.
The report analyses 14 key areas and whist Spain didn’t top the charts in each of those areas, its overall high score in all of the categories made it the winner. Two of the lowest scoring areas in the report where price competitiveness and business environment.
Not being the cheapest destination is not really a worrying factor as there is something in Spain for every budget and being too cheap would perhaps no longer attract the rich and famous and those wealthy individuals that push lots of money into the tourism spend whilst they are here.
Another category analysed was Spain’s air infrastructure. In this category Spain is amongst the top 9 countries, although the ground transportation infrastructure is only in the top 15 which suggests a little modernisation is required.
Spain holds this crown quite simply because as a tourist destination it delivers. Much of this has to do with climate and things to do as well as being an easy commute for Europeans, but one thing the report implies is that Spain cannot sit on its laurels if it wants to keep the top spot.
Far from being a transport hub Malaga over the years has become a cultural city with so many attractions. Its port area has become a thriving tourist attraction as it is surrounded by fantastic restaurants, shops and leisure facilities.
With this popularity the number of yachts and luxury yachts mooring in the area has increased too and it is with this in mind, that the Junta de Andalucia are considering plans for expansion of the port into a glitzy Miami-style port for luxury moorings. There have been several mega yachts, including some of the most famous in the world mooring at the port to restock.
The port authority recently announced early plans for the new marina that would provide space for 40 luxury yachts from 40 to 100 metres in length, the length of a full-sized football pitch in fact.
The new facility would be on the Marqués de Guadiaro quay, the stretch of the port next to the dockside shopping centre that runs towards the city centre. It would resemble the huge private yacht marinas of Miami with a gardened protective outer wall.
The Melilla ferry terminal would move to the other side of its current dock to allow more space.
With data showing there are over 100,000 private yachts over 40 metres long with another 755 under construction having the facilities available for them to moor safely in Malaga would increase tourism and spending in the area.
Malaga is seen as an ideal stop over and resupply point before mega yachts sail to the Caribbean and with the proximity of Malaga airport this also opens up travel options.
There is talk of building a heliport so people could transfer quickly to the airport and onwards to Marbella or Puerto Banus.
No detailed plans have been produced to date but this kind of Miami-style marina would appeal to those who have property in the luxury regions of the Costa del Sol, perhaps drawing in further demand for high end property.
This shows the confidence in the property market as whole is moving in the right direction and this is something we can see with the influx of contemporary and modern new developments popping up attracting that foreign investment along the Costa de Sol. Foreign nationals have spent some €888 million on Spanish properties in just the first six months of the year. That is more than double the investment from January-June 2016.
Last year established itself as a hugely important year for foreign buyers. The British, Germans, Russians, French and other nationalities bought some 13.2 per cent of all homes sold in Spain which itself was the highest proportion in over a decade. That equates to 53,500 transactions during 2016.
A 2017 market report from JLL suggests that percentage will be easily eclipsed this year. It is beyond any doubt that 2017 will represent the eighth consecutive year of foreign buyer growth in the Spanish housing market. Again, this is something you can witness when you see all the building works taking place and those new developments include cost effective 1-2 bedroom apartments on urbanisations up to lavish 4-5 bedroom villas with private pools.
A breakdown of foreign-led transactions in 2016 shows that UK nationals still top the international rankings. The British bought 19 per cent of the 53,500 homes sold to foreigners last year and are continuing to break new ground in 2017 despite concerns over the potential impact of Brexit and the weakening pound. Several media reports show that Brexit is not stopping UK nationals from realising their dream of buying a holiday home in the sun.
The British were well ahead of the second-placed French, who had eight per cent of transactions slightly ahead of the Germans on 7.6 per cent, the Swedish on 6.7 per cent, and Belgians 6%, but this percentage split is something that could change. Economic factors do influence property transactions to a certain degree, but property still remains the most solid form of mid to long term investment.
Bromley Estates Marbella has just been named by developer Kronos Homes as the exclusive promoter for the newly launched La Finca by Kronos Homes resort.
Since the company was launched in 2009, Bromley Estates Marbella has achieved a well-earned reputation as a leading real estate agency on the Costa del Sol. As longstanding property experts, they have the experience needed to identify projects that present the best value for money as holiday homes, permanent residences and investment opportunities for their clients. La Finca, Sotogrande falls firmly into all 3 categories.
Marbella real estate specialists, Bromley Estates Marbella, have officially launched this lifestyle and golf resort on the market on the 24th of June 2017 and sold the first units the same day. Prices start and 410,000 Euros and prime units will not be around for long.
La Finca by Kronos Homes comprise of luxury properties next to La Cañada Golf Course in La Reserva, Sotogrande one of Europe’s finest residential addresses. This brand new development of contemporary golf villas is the ultimate in stylish living offering the full package; deluxe property, idyllic location, close proximity to golf and incredible sea and golf views. These golf villas are set within an extremely desirable family friendly environment protected by 24-hour security. Residents have exclusive access to a host of onsite amenities including swimming pools, a gym, paddle tennis courts and even a running track. Property of this calibre which is available at this price point, will be in high demand amongst international investors.
Managing Director of Bromley Estates Marbella, Hayley Bromley, explains, “The stylish villas were designed by renowned architect Rafael de La Hoz and make a real statement. The surrounding area of Sotogrande is one of the most sought after exclusive areas on the Costa del Sol that attracts golf professionals and even royalty with polo events, marina and a yacht club. Gibraltar is just 20 minutes drive by car whilst the amenities of Marbella and Puerto Banus are only 20 minutes in the other direction. A perfect location with excellent facilities – in fact somewhere I know our clients will love.”
Learn more about La Finca de Sotogrande
When you are looking for a new home in Spain or even that lovely second property or holiday home there is much to consider on your wish list. So, when faced with choosing a property why buy a new build? Why not, is what we say, and here are a few reasons.
- Buying into a new development early could increase your opportunity to benefit from capital appreciation. Why? The first investors in a project often get a discount as well as the chance to pick the best units. And once the development becomes established, demand typically increases.
- Some developers often offer attractive finance deals or payment schemes, which you won’t get when purchasing an existing resale property. Paying for your property in staged payments suits some buyers.
- There may be the chance to negotiate extras into your deal with a new-build purchase. This could be the developer offering you a furniture pack or even membership of a gym or the local golf club as an incentive. One of our developments recently offered a Mini Cabrio car with property purchases!
- New properties usually come with a guarantee from the developer, who will also be obliged to take care of any faults when the new owner takes possession, a process known as snagging.
- Buying off-plan is exciting as it gives the buyer a certain amount of control over the interior of their property, allowing them to tweak or choose the design, and choose the style and colour of certain fixtures and fittings like flooring, bathrooms and kitchens.
- New properties are built using more modern, energy efficient materials than you find in older resale homes. They often incorporate solar or greener energy solutions. Not only does this reduce your carbon footprint, but saves on bills too. Technology within the homes is likely to be up to the minute – think air-con, fibre broadband, home control systems.
- There are so many smart, modern new-build properties in sought-after locations with access to good facilities which usually command a premium in the local rental market. Modern developers are experienced in choosing sites where their development benefits from the local amenities.
There are so many benefits to buying a new build or off-plan property, so if you are sold on this method of buying your dream home in the sun take a look at our new developments.