Costa del Sol’s residential recovery set to continue in 2016
Costa del Sol’s residential and land market is recovering at a greater rate than most other parts of Spain, says property services provider Jones Lang LaSalle.
According to the firm’s Spanish snapshot report, growth of the country’s residential sector is fragmented both on a macro and regional level, but house prices along the Mediterranean coastal strip, including Marbella, are tentatively increasing.
Madrid, Barcelona and the Balearic Islands are also clear investment magnets.
Ray Hogan, managing director of Oryx World Portfolio, which specialises in the purchase, sale and lease of upmarket Marbella properties, attributes the strength of the region’s market to its weather and laid-back holiday vibe.
He says, “I love Marbella for its culture and feeling of being in the moment. Many Oryx World Portfolio investors agree and, like me, are drawn to the destination for its exclusivity and secure location.”
According to the report, foreign buyers of holiday homes have become major players in Spain’s residential market, accounting for 12.82% nationwide. These buyers are attracted by Spain’s climate and by the drop in prices that has taken place over recent years.
Foreign buyers come from a range of countries. The main country of origin is the UK, followed by France, Germany and Belgium. The number of Russian clients has fallen, mainly due to the weakness of the rouble and conflicts with the European Union.
Hogan adds, “Our Marbella investors are mostly from the UK and Middle East. The region with the highest increase in demand over 2015 and the start of 2016, however, is the Middle East.”
In 2015, residential investment across Spain attracted interest, both in direct property acquisitions and in non-performing loan portfolios. This is a result of the substantial drop in prices, the positive macro-economic outlook and the current period of low interest rates.
Investors are showing great interest in acquiring large portfolios of assets for subsequent rental and management, as well as in value creation through property development and complete building renovations.