Marbella real estate market returns to strong growth
The international economic recession that followed the financial crisis of 2008 affected Spain strongly, leaving its banking system and real estate market overexposed. Many of the country’s banks were suddenly saddled with large stocks of unsold or unfinished properties, but by 2012 the situation began to turn around in key markets such as Marbella, Mallorca and Ibiza.
Today the real estate and tourist sectors in these regions are doing very well, registering a resurgence in demand for both their lifestyle and properties. Traditionally ahead of the national curve, the luxury coastal markets once again were the first to emerge back into growth, setting the pace for a national real estate recovery that gathered pace in 2014 and continued to pick up speed throughout 2015.
Now the positive news has spread to other parts of the country, most notably Madrid and Barcelona, where last year produced a record in international commercial property investment, while the sales of bank-held stock have encouraged large investment funds to buy entire stock portfolios. In other words, Spain’s property market is looking healthier than it has for quite a few years, and the recapitalised banks have begun to offer mortgages again.
This picture now also extends itself to the economy as a whole, as the early growth registered in 2014 has consolidated itself into a strong showing. Indeed, with around 3% expansion of GDP in 2015, Spain has one of the fastest growing economies in Europe. Labour reforms, improving government finances and growing exports signal gains in productivity that will form the basis of more growth in the years to come.
More tax cuts are kicking in this year to bolster further growth and consumer confidence has begun to return, manifesting itself not only on the high street but also in a recovering domestic tourism and real estate market. Having been at the forefront of this economic revival, Marbella is currently experiencing a palpable sense of growth and optimism, leading the way in creating jobs and lowering unemployment, which at the nationwide level is also falling fast.
It all spells positive news for the region and the country as a whole. More work remains to be done to continue to improve productivity and technology based expertise, but Spain seems back on the road to sustained economic recovery and mid-level growth, which can only give investors a growing sense of confidence in what could again become one of Europe’s most exciting economies.
Callum Swan has seen first-hand how the Marbella property market has been leading Spain to recovery, with sales of top quality homes in exclusive areas, including the Golden Mile, Puerto Banús and Nueva Andalúcia, picking up strongly over the past few years.
If you are looking to sell, buy or rent property in those areas, please contact us. With our experience and in-depth knowledge of the market we feel sure we can help.