Latest Market News

With some uncertainty in the market, we were approached by the media to give our view on how property market is in Marbella, Max Pakbaz CEO and founder of South Spain Properties in Marbella explains! August 2016.

With interest rates still low and set to go even lower, investors are flocking to the property market to gain better returns for their money. We have seen more increase in property inquiries in Q2, and Q3 of 2016 in Marbella. We speak for our own market and unlike some other areas, Marbella is attractive for many nationalities, over 130 nationalities are and have been active in property market in Marbella, and as a result, the market is less affected by events like the latter in UK. What people tend to forget is Marbella is a lifestyle, it’s a brand, it’s a dream , it’s a super trendy jet set place with 5 star amenities, and secure, 320 sunny days a year you don’t even get that in Mallorca or South of France.

Investors who know different regions and know what Marbella has to offer , find it increasingly interesting to invest in. We have had many inquiries from Nordic based investors interested in residential complexes with high number for sale, with potential for rent and resale in future. In cases like this we recommend only prime locations like Marbella as the resale value will always be secure. Our clients who bought properties in recent years with view to take advantage of rental income, have already enjoyed great income they tell us, this can be explained with highly unstable holiday destinations like turkey, and holiday makers wanting to stay safe, choosing Spain once again, and remembering their love affair with charming Spain. For some holiday makers in the past going to a place like Turkey was solely a money saving matter but one thing that is important is safety of your family when on holiday, and that came on top of the list when holiday makers were asked why they chose Spain over some other destinations.

In the Marbella market the recovery has been fantastic and many owners who invested in a property in the period between 2007 and 2015 already has seen a healthy profit in their property and some have already sold to release the profit and some others like to hold on to their property and enjoy using it for themselves and renting and wait for much bigger profits , quite understandably. After all the golden rule of property is location and our recommendation is don’t compromise that!

What also made a difference for people to get their money out of the bank accounts and invest in property was inflation eating through the interest. There are some ways of making sure you don’t lose money with inflation, but generally keeping it in the bank is not one of them. Banks pay little interest and that’s secure but its not as high as inflation in the play. Some buyers also been watching the market since the 2007 and now after market showing increase every year since 2013 they realise it’s the best time to buy properties again.

Once again people realise brick and mortar is the best investment, as we know with other assets such as stocks and shares, there remains a lot of volatility and the value of those assets could be wiped out overnight. One thing we noticed about our own properties the ones that scored high with location, quality and views they always sold quick regardless of the market, the latest one of our sea front apartments in Marbella sold for 2Million in a matter of 1 week, you can imagine even the owner was surprised!

“In the current climate where buyers feel some uncertainty, properties suitable for short term rent offer peace of mind and mitigate risk. Buyers know for example that they will get between 8-10 % return year in and year out with a good apartment while the price of property is also going up and owners know they will get their hands on a nice healthy profit in a few years time.

Our real estate experts with years of experience can help you to choose real estate that is right for your life style as well as it being a great investment for future.

South Spain Properties

I hope you liked this post and be sure to keep up to date with our blog for all the latest news. To book an appointment or for more information on our properties contact us now.

SOUTH SPAIN PROPERTIES PROMISE! STEP-BY-STEP support from our dedicated team of Property Consultants, Lawyers, Builders & Interior Designers!