Costa del Sol Property Market News Oct 2018
During July & August, as expected the coast ignited with beach parties galore and millions of locals and holidaymakers flocked here to enjoy the Costa del Sol’s luxury lifestyle to the full. Now though, the coast returns to the more relaxed Mediterranean way of life, most ex-pats moved here for. It’s normal for September to be one of our busiest times of year and this year was no exeption. Buyers are coming from all over Europe with the British buyers leading the way followed by the French, Scandinavians and Belgians etc, all jostling for position behind them. All of them wanting to capitalise on Spain’s fabulous weather, healthy alfresco lifestyle, good infrastructure, steady economic recovery and flourishing property market. Total house sales figures from the first quarter of this year have recently been released by the Ministry of Development showing an annual increase of nearly 15% in the Malaga Region including Marbella and Mijas Costa etc.
We are expecting further increases of British Buyers, now that the pound is making a slow recovery against the Euro and with the rush of Brits wanting to secure a Spanish home and residency before Brexit. Property prices continue to steadily grow at a rate that has expanded every year over the last five years at a sustainable rate, helped by significant international demand and affordable house prices. Statisticians and the banking community predict price increases of around 5% a year for the next few years at least. Foreign tourist numbers are still very high with their generous spending habits, highlighting the importance of tourism in Spain. This along with the shortage of quality long term and short term holiday rental properties along the coast, has led to a large number of “Buy to Let” investors getting back into the market.
Regarding BREXIT, many very positive points have already been agreed in principle, such as Expat’s rights to remain in each others countries / areas and even reciprocal use of each others health services. However, there are still some serious sticking points such as trade agreements and how to control a border between Northern and Southern Ireland for example. Both Britain and the European Union are currently threatening that they are prepared to separate without full agreements in place (Hard Brexit). Many think that this is simply both sides flexing their muscles to help in their final negotiations, as it would not benefit either side to separate on a bad note and without an agreement in place by the current deadline of 29th March 2019.
Currently it’s very easy for Brits to get Spanish residency as a European citizen, but nobody knows what conditions would need to be meet by Brits after Brexit. So if you are thinking about moving to Spain, you only have around 5 months to find a property and register yourself as a resident, before the UK leaves Europe. There is still plenty of time and our website offers lots of information and services, which you can find if you click into our main menu. However, you don’t actually need to do any homework yourself, as we have professional Agents and Lawyers ready to guide you through the whole process, from finding the perfect property to helping you with all the residency paperwork. If on the other hand you are a Brit already living in Spain and you want to stay, but not yet registered anywhere, it’s advisable to apply now for official residence cards and register for an empadronamiento certificate at your local Town Hall before the March deadline.
Property Hot Spots on the coast, based on our sales and most requested areas are definitely Benahavis, New Golden Mile, Nueva Andalucia and Mijas Costa’s jewel in the crown La Cala de Mijas, all fabulous and desirable locations surrounding the Marbella Region. These classy areas are mainly sought out by residents and luxury holiday home owners, so not too touristy but plenty of great restaurants and things to do, classier than neighbouring towns and offer good value for money. Overseas Dreams is one of the coasts most proactive Master Real Estate companies and we have Valuers out every day listing all the best new homes, off-plan developments and resale properties in these areas. Many of these properties selling before we even load them on the website, so contact us now if you want help finding your ideal home in your perfect location.
Alternatively, if you’re thinking about selling, now could be a great time with all the renewed interest in the Costa del Sol. After 25 years helping people buy and sell, I can confidently say that after choosing the right agent “Overseas Dreams" the next most important decision is choosing the correct initial marketing price. This is because the first 3 months of marketing usually offer the best selling opportunity, due to the surge of marketing that follows a new listing. If priced competitively, it should sell reasonably quickly. Any normal person left to value their own assets, are naturally going to try as high a price as possible. Many weak or inexperienced agents will take on properties at any price set by the Vendor, for fear that the Vendor may be disappointed with the truth and call another Agent. This is not actually helping the Seller at all and nearly always leads to a no sale. An experienced and professional Agent will share his knowledge and give honest advice, even if it's not what the Vendor wants to hear. We would discuss what price similar properties have sold for in the area and show comparable properties currently on the market, so the Vendors can themselves understand the true value and agree the correct marketing price. Historically the best months for selling are February, March, April and May and then again in September and October after the holiday season. Obviously we sell properties all months of the year, but sales are always much higher during the above months, which are the times most buyers get serious about purchasing their luxury Mediterranean holiday home. It’s always a good idea for us to take photos and start marketing your property a month or two before these dates, so everyone is well aware of your property by the time they come out to buy.
Peter is a frequent contributor to the UK / Spanish press and was one of the panel of experts for Overseas Property Professional magazine, having spent most of his working life as a professional Real Estate Agent and Valuer. He is also the Managing Director of one of the coast’s top Master Real Estate Agencies “Overseas Dreams” with registered offices in both Marbella and La Cala de Mijas.
For more information on buying or selling property on the Costa del Sol, contact Peter or any of his team on Tel: (0034) 951 551 444 or email: info@OverseasDreams.com
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