Positive News for the Property Market from Spanish bank BBVA
To those involved in real estate on the Costa del Sol, the signs are clear. Activity at certain price levels has soared during the first quarter of 2015, giving confirmation to many of the recovery in the property market.
In its latest report ‘Real Estate Snapshot’, Spain’s second largest bank BBVA has recognised this trend, commenting that statistics prove earlier indications of a stabilising market. Their research relies on the perceived pillars of recovery, which are increased mortgage lending, trends in property prices and increasing levels of construction.
22% Rise in Mortgage Approvals means the demand for Property in Marbella is High
For several years, blockages in mortgage lending have prevented many potential buyers from investing in property in Marbella and the Costa del Sol. Reduced loan to value ratios and strict criteria for borrowers have often been blamed for stifling the property market, but they were necessary to protect the banking sector’s return to strength.
However, statistics show that in the first quarter of 2015 there has been a 22% rise in mortgage approvals (year-on-year) as well as a 20% increase in the total amount of credit lent on property. This has clearly encouraged the mortgage market, after a period of little or no growth, to re-establish itself at a time when house prices are still low enough to attract investors from all over.
Nationally house prices are beginning to stabilise and although increased demand has not yet caused substantial price rises, in Marbella and other coastal regions, property prices have been rising slowly but surely. In those areas where demand is high, construction is again on the increase with more planning approvals granted this year (23% growth during the first quarter year-on-year) and rising levels of employment in the building sector.
First Quarter Property Sales in Spain Show a Substanial Increase
However, it’s actual sales figures that determine whether the green shoots of recovery really exist. The General Council of Notaries reports 34,756 sales recorded in March – a substantial increase (12%) on March 2014 – while government statistics reveal a 2.3% rise in residential sales during the first quarter of 2015.
On the ground, increased interest and activity in the Marbella property market has encouraged many working in the sector to refocus their efforts, with great results and huge positivity for an even better 2015. So if you’re thinking of investing in a property in the Marbella area, contact us for more information.