LET THE GOOD TIMES ROLL
By John Graham
We are coming to the end of the first quarter of 2017, which is a good time to take a look at the state of the property market on the Costa del Sol. To establish how the market is doing we need to compare data from 2016, 2015 and the peak sales of 2007. Regarding property on the Costa del Sol, latest figures show that sales have got off to a good start and that 2016 property sales were up on 2015, so the year-on-year figures continue to grow consistently –which is excellent news.
Regarding property prices, on average today’s prices on the Costa del Sol are around 46 per cent below the peak of 2007, but some experts concede that properties 10 years ago were over-priced, so today’s buyers are being offered properties at much more realistic prices.
Compared with the current national market, property prices on the Costa del Sol have increased above the national average – in prime locations but still competitive.
In 2017, it will be just as important for property prices to remain good value on the Coast, so that buyers continue to be attracted to the area and the increase in year-on-year sales is consolidated.
The demographics of property buyers on the Costa del Sol are always changing. Today UK buyers still hold on to the number one spot, in spite of Brexit, but the Russian market has dropped considerably and Scandinavian buyers have now filled the void.
We are also seeing an increase in interest from the Far East, China and India. These are massive markets and any percentage share will have a positive impact on property sales on the Costa del Sol in 2017.
The Spanish “Golden Visa” is helping to create strong interest, together with an increase in direct flights from India, China and Hong Kong to Madrid. These can be conveniently followed by a short flight or high-speed AVE train journey to Málaga.
In general, developers and constructors of new build and refurbished properties are enjoying great success in sales all along the Coast, and this trend looks like continuing throughout 2017.
The quality of new build and refurbished properties has improved, due in part to increased competition. Architects and interior designers continue to raise the bar in design and specifications – and buyers in 2017 will be spoilt for choice. Tourism is also essential for the property industry. A high level of tourism usually equates to higher property sales. In that respect 2016 was a record year and experts are predicting another boom year in 2017.
So let the good times roll for property sales on the Costa del Sol in 2017.
John Graham is a senior surveyor and property investment advisor.
Tel. 657 337 477 / (+ 44) 203 2900 983 / email@example.com