Marbella Property Market Moves

May 31, 2011 - PRLog -- At a recent meeting of Marbella property agents, several delegates commented on the positive attitude being taken by the Spanish government in revitalising the real estate market. They said that they were pleased to see that José Blanco, the development minister has visited London.

The minister’s visit was to promote the opportunities available to British real estate buyers in Spain as a whole and in the coastal cities in particular. Michael Liggan of Alta Vista properties was particularly upbeat. He said that whilst the minister’s visit was aimed at large investors such as pension funds, individual investors had also learnt of the many new opportunities that are available.

These new opportunities arise from the actions of the Bank of Spain, the regulator of the Spanish banking industry. The largest 23 banks are under pressure to dispose of large parts of their toxic real estate assets by September 2011. These are properties which have been repossessed, mostly from developers who could not sell the new homes, but in many cases, from individuals as well.

The minister certainly had an urgent need to act. Prices across Spain have fallen by at least 20% on average in real terms. In many places the falls have been much higher than that, being up to 40% or more in some areas. The Spanish economy as a whole showed some encouraging activity in the final quarter of 2010 with a small increase in GDP of 0.6% Unconfirmed figures for the first three months of 2011 show that the trend is continuing. Real estate professionals are reporting increased levels of enquiries and are expecting this trend to continue.

The main reason for increasing interest in Spanish property is the action of the central bank. Many thousands of properties have come onto the market in recent weeks and many more will be available soon. Mr Liggan said that market sentiment has shifted markedly since these properties were released for sale. He said that this had two effects on Britons interested in obtaining a Spanish property. Firstly, there is a much larger range of properties available and this is causing some confusion as a very small proportion of them are being actively marketed. This follows the great culling of property agents following the crash of 2007. Overall figures are not available, but it was reported that over 20,000 individuals lost their real estate related jobs on the Costa Blanca alone.
The second reason is that the Costa del Sol and Marbella are favourite venues for British people investing in Spanish property. The slump and highly discounted prices have brought families into the buyer profile, which was formally dominated by those who were either retired, or close to it. Families looking for a holiday home seek very different properties to those who intend to move to Spain on a permanent basis. Whilst both age groups like the climate and atmosphere of Southern Spain and the Mediterranean coast, younger families want to be in busy areas with much entertainment whereas the retired buyers look for more peace and quiet, but to be near facilities.

Mr Liggan said that buyers can save a lot of time by talking to a real estate professional very early in their decision making process. Agents are experts in their particular area and know where the best bargains are as well as the character of the various townships along the coast. He said that whilst Britons are generally very independent and like to be hands-on in their purchase, failing to get professional help can lead to a very expensive nightmare experience, as many people have found to their cost in the past.

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Alta Vista Spain is a real estate company in Marbella on the Costa del Sol, Spain. Michael Liggan is a driving force and our chief property bargain hunter.