Financial indicators looking healthy for Spain

As we reach the end of 2014 it’s heartening to look back over a year that has seen the upturn in the Costa del Sol’s property market gain further ground. For a few years we faced the slump in the market with stoicism and we’ve now emerged on the other side having learnt some valuable lessons and feeling better equipped to make the most of the future.

One of the chief issues that affected the market in recent years was the banks’ reluctance to provide home loans. Whilst we understand the reasons for this, it is great to see that mortgages are becoming available again. During August 2014, residential mortgage signings increased by 23.8%—the third consecutive month to show a rise.

In addition, the average value of a mortgage loan increased by 5% to €102,430 and the total value of mortgage lending rose by a stunning 31% to €1.54 billion. Further good is that Andalucía is currently the largest market for mortgage lending, which underpins the fact that demand for properties here is buoyant.

The real estate market in Marbella has also benefitted from an influx of buyers who don’t require mortgages. These cash buyers are making the most of the attractive prices and properties are selling faster. Those buyers who do need a mortgage have found that the banks are lending a lower percentage of the property value and require more documentation than in the past. However, even these issues are not deterring buyers and indeed, at the current market values, investors are doing well.

With regard to this expat investment in property, the statistics show a 36% increase over 2013 and a total spend of €4.2bn on property, with the majority of purchases being in resale properties.

Finally, British buyers are enjoying an improved exchange rate between sterling and the euro. In 2014, the pound appreciated by 8% against the Euro, which makes Spanish property that much more attractive for British cash buyers. It also makes holiday rentals here better value, as British visitors get more for their money overall.

We can go into 2015 feeling confident that next year is going to be bigger and better, with the local economy looking pretty vibrant once again and the region’s properties and lifestyle very much in demand. Please feel free to drop into the Bromley Estates offices and let us show you our portfolio of stunning properties.