More good news about the current status of the Marbella property market is appearing in several of the latest Costa del Sol Property Market reports. Here’s a summary of some of the latest news.
2016 is proving to be a great year for the property market here on the Costa del Sol. The latest reports show prices are rising and sales are booming. This is especially true within the new-build market with many new luxury developments of modern contemporary villas and apartments leading the success.
Analysts from leading agents including Aguirre Newman and Knight Frank are stating this success has been driven by a pent-up demand for new properties in the most popular locations like Marbella, Benahavís and Estepona.
New-build property prices on the rise
Figures from the September report out of the Spanish Institute of Statistics (INE) show there has been a 3.9% overall rise in Spanish property prices in the year to Q2.
In the new build sector this increase was even more dramatic at 8.4% over the past 12 months to June 2016. This is almost three times the 3.2% increase for prices in the resale property market, confirming modern new build property is in high demand.
This rate was even higher in the two Spanish regions with the highest overseas demand, namely the Costa del Sol and Costa Blanca. Here in Andalusia, new build prices have risen by 8.6% in the year to Q2.
Sales ride high on the Costa del Sol
The INE’s latest figures also show that property sales rises here in the Malaga region are far higher than the national averages. In Q2 (From April to July) sales of Costa del Sol property went up by 14.3% compared to the same period in 2015, due to high demand from buyers.
Like much of the Spanish economy, the Costa del Sol new-build property sector is having a great 2016 so far. The INE figures show at 7.2% rise in year-on-year in Q2.
Dramatic increase in new developments on the Costa del Sol
Aguirre Newman’s latest summer report shows developers are quickly rising to the demand with the first rise in new build homes for sale on the market since 2007. Some 15,500 new build properties were on the market in May 2016. This represents a 4.87% rise in new build properties offered in May 2016, when compared to the May 2015 figures.
For those of us living on the coast it is obvious, but property consultants Aguirre Newman’s report confirms a huge increase in new development taking place. In the year to May 2016, 49 new developments had started work on the Costa del Sol, a staggering rise of 69% on the previous 12 months.
The report also gives an insight to the effect higher demand is having on average sales times. These have dropped dramatically for apartments, townhouses and villas. For new-build Costa del Sol apartments the average selling time has halved when compared to May 2015. This pattern repeats for new build townhouses and villas, which were selling 58% faster in 2016 than the previous year.
The right Spanish property location
The Costa del Sol is no different to other global property markets, location is always key. The Luxury market here in Marbella has again proven to be one of the country’s high-end property hotspots.
In the Spain Insight 2016 report from Knight Frank, which is dedicated to luxury Spanish property, Marbella is pinpointed among Spain’s top places for luxury property. Marbella is the only resort on mainland Spain to feature in the report. Knight Frank highlights strong interest from Middle Eastern buyers as a key factor in Marbella’s continued success story.
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