The figures for 2017 not only confirm that it was a good year for Spain – as measured in terms of tourism visits, property sales and overall economic performance – but they also act as key indicators that help to create a clearer picture for 2018.
So far, the new year has maintained the positive momentum of 2017, and in doing so the Spanish economy has also been remarkably resilient in its reaction to political events such as the long spell without a government during extended coalition negotiations in 2016, and the Catalan constitutional situation that came to the fore towards the latter part of 2017. A good indication of this is the credit rating upgrading of Spain to A – the highest it has been in years.
The figures for the third quarter of last year bear this out, continuing the trend of record-breaking tourist visits, strong economic growth – right now Spain is one the main drivers of GDP expansion in Europe – and a strongly resurgent property and construction sector. Though domestic demand for Spain’s real estate is also undergoing a renaissance right now, in the coastal areas it is above all foreign interest that stands out.
Q3 2017 real estate statistics
Narrowing it down to Andalucía, over one in six of all real estate transactions in this large region (roughly equal in size and population to Hungary) are to foreign buyers and investors, amounting to a total of more than 3,000 sales in Q3 2017. Within the province of Málaga the picture is different still, with foreign buyers accounting for 30% of all sales by number, and significantly more than that by value.
The bulk of sales registered come from the large provincial capital of Málaga, Spain’s fifth-largest city, but if you take into account the much higher average value of the homes in Marbella and the Costa del Sol, where the majority of foreigners buy, they could make up as much as half the total value of property transactions in this region. Indeed, the average spend for the whole of Málaga – including the city and country areas – is more than double that of most provinces in Andalucía.
What this tells us about Marbella real estate in 2018
Well, it shows that the year ended on a high note, and the first indications are that in this respect nothing has changed as we move into 2018. Tourism numbers, investment levels, mortgage and building applications, property sales and economic growth and employment figures – though not yet official – are indicating that 2018 is continuing as 2017 ended. The best news of all is that it does not have the look and feel of an uncontrolled boom, but rather strong growth levels that at this rate can be sustained for some time to come.
Positive indicators in their own right are the fact that demand has by no means dried up, financing and capital are flowing again but under proper scrutiny, and interest rates are at a historic low – and poised to increase next year – making 2018 a very sensible time to buy. Coupled with the fact that property prices are growing steadily, demand is well-spread geographically and British buyers are defying Brexit blues.
Above all, there is a fantastic choice of modern and more traditional homes for sale in a wide range of locations, so contact us for more information about buying Marbella property in 2018.