A New Year brings new opportunities for the property market on the Costa del Sol, so what can we expect in 2017? Before looking into the crystal ball to predict the future we first need to look back at 2016 and beyond to understand recent trends and the property market’s starting point for 2017.
The years 2015 and 2016 were important for the Costa del Sol property market. You could argue that it turned a corner in terms of sales and prices.
Major foreign investors and banks headed to the Costa del Sol to invest in new-build apartment and luxury villa projects, as well as bank repossession apartment and villa projects.
Resale properties sold well and there was a substantial increase in refurbishments, bringing older properties up to modern standards.
The golden triangle of Marbella, Benahavís and Estepona benefited the most from major property developments, but Mijas Costa and Málaga also enjoyed a substantial increase in new developments.
Year-on-year property sales increased steadily during 2015 and 2016 and, most significantly, property prices bottomed out in almost all prime locations on the Costa del Sol. Prices started to rise in the second half of 2016, so all in all a positive property market.
In 2017 new-build luxury apartment and villa projects will continue to grow along the Coast, as will more affordable apartment projects.
Architects will be busy designing state-of-the-art modern contemporary luxury properties, which are now in great demand.
Luxury living on the Costa del Sol will continue to improve as more new homes and refurbished homes will have cutting-edge technology included as standard, which in previous years would have been an extra luxury.
There will be floor-to-ceiling windows, high ceilings, under-floor heating, open-plan interiors, automation systems and energy-efficient homes with low greenhouse gas emissions using the latest technology.
Interior designers will continue to be challenged this year to create spectacular luxury interiors for villas but also to improve luxury interiors for mid-market properties.
In 2017 mortgages should continue to be more available and offer historically low interest rates, making it easier for buyers to purchase their dream home on the Costa del Sol.
Geopolitics apart, the volume of property sales should continue to grow year on year on the Costa del Sol in 2017, if resale and new properties offer buyers good value for money, good quality and good capital growth.
So, my crystal ball predicts another good year for the property market on the Costa del Sol.
In future editions, I will be writing about property trends on the Coast and keeping you up to date on the movers and shakers in the industry in 2017.
In the meantime, a happy and prosperous New Year to all Home & Lifestyle Magazine readers.
By John Graham
John Graham is a senior surveyor and advisor to property investors.