POSITIVE YEAR FOR REAL ESTATE IN MARBELLA
The news that the number of mortgages approved in the third quarter of 2015 increased again—making it 18 months of consecutive rises—is a further indication that liquidity has returned to the Spanish real estate market, according to the Spanish Council of Notaries.
In November there were 19,247 mortgages approved, an increase of 16.4% on the same month in 2014. Taken together with more data from the notaries that showed home sales registered in the third quarter were up an average 14.7% year-on-year across Spain—with every region except Navarre registering an increase—it can be seen that the real estate market is continuing its up-turn.
Andalucía saw a 14.5% rise in sales, according to the notaries, with the region combined with Catalonia, Madrid and the Valencian Community accounting for nearly two thirds of total home sales in Spain.
Marbella property market to continue upswing
Figures such as these have led to increased optimism from property market experts, who are largely bullish about real estate prospects for 2016. A recent article in Spanish daily newspaper El Mundo discussed the market with a panel of respected commentators, all of whom expected prices to continue on an upward trend.
Economics professor and head of real estate studies at the University of Barcelona, Gonzalo Bernardos, expects an average price rise of 12% in most regions, with hotspots like Madrid and Barcelona seeing gains of between 25% to 30%. On the basis of past history Marbella can expect to follow close on the big cities’ lead.
However, José García Montalvo, professor of economics at the Pompeu Fabra University in Barcelona, was not quite so optimistic, predicting fairly stable prices nationally, with Madrid, Barcelona and the Costa del Sol seeing rises of between 5% and 10%—still a healthy increase.
First time buyers enter real estate market
All the commentators agreed that they expected to see first time buyers re-entering the market as wages to price affordability and mortgage availability are both developing favourably at the moment, particularly with interest rates at such low levels.
Sr Bernardos said: “Almost anyone with a job and savings of about €20,000 can afford to buy,” explaining that a family with an income of around €1,800 a month would be able to afford a home costing up to €150,000. He expects a total of 490,000 homes sales in 2016—up 20% from last year.
Many professionals within the real estate industry view the prospects for 2016 with great optimism and Marbella Direct agrees that it looks likely to be another positive year for local real estate industry in particular.