Upbeat Forecasts for Costa del Sol Property Market
At this time of the year, market figures from 2016 still tend to be trickling in as the various official bodies complete their studies and cross-check their reports. What is already patently clear, however, is that last year was a resoundingly positive one for the Costa del Sol real estate sector – as the lingering remnants of the crisis gradually dissipated – and the universal outlook for 2017 points to continuing growth.
In tune with the sensible and realistic post-crisis psyche prevailing in the industry these days, cautious optimism reigns over any misguided euphoria. But there are ample reasons to be confident that, even with the uncertain repercussions of such ongoing issues as Brexit, this year will once again be an encouraging one for those doing real estate business in southern Spain – both buyers and vendors.
This trend is confirmed in the new “Catella Market Tracker” released this past week. Researchers for Catella (a leading specialist in property investments, fund management and banking) concluded that expectations that Spanish property prices would increase in 2017 were supported by a growing Spanish economy, increasing rents and significant interest by international investors.
Catella noted, “The Spanish economy developed well in 2016 and GDP grew by 3.3 per cent, well above the average GDP growth rate in the Eurozone of 1.7 per cent. The Spanish economy is expected to continue to grow… and GDP growth of 2.5 per cent is forecast for 2017...
In addition to a growing Spanish economy and increasing commercial real estate rents, the increase in Spanish real estate prices is being supported by a high level of interest in Spanish real estate among international investors. With its relatively strong growth compared to other European economies, Spain stand out as an attractive alternative for international real estate investors.”
Spain’s GDP growth makes it one of the leading economic performers in Europe, ahead of traditional powerhouses France and Germany. It has also helped reduce the country’s chronic unemployment in recent years, with levels falling to under 19 per cent at the end 2016. This is still high, even on a Europe-wide basis, but the lowest since 2009.
One of the key engines of Spain’s economy is construction, accounting for 10 per cent of GDP in 2016 and in solid recovery mode after the post-boom bust. Experts predict that as many as 200,000 new homes will be built this year, with popular areas such as Marbella leading the way. Investment is also flourishing in commercial real estate, including the development of new resorts, hotels and offices.
Another 2016 trend providing great hope and comfort for 2017 relates to tourism. The final figures are not yet in, but Spain is expected to report record overall visitor numbers for 2016 (more than 75 million holidaymakers), and authorities are hoping this could rise to more than 80 million in 2017. As one of the country’s premier tourist destinations, the Costa del Sol has been a major pacesetter leading this trend – with a consequent boost in the number of people deciding to buy a home in the Mediterranean sun after being wooed by the Coast’s many attractions.
Even during the difficult years, Marbella’s iconic Golden Mile area remained true to its name, and today it is still one of the most popular areas for investors and private home buyers alike. The featured villa and apartment here, for example, are both superb value at €1,890,000 and €945,000, respectively.
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