One of the most successful steps in the recent economic history of Spain was considered to be the liberalisation of the land market for foreigners. The result was that hundreds of thousands of foreigners, mainly from Germany and the UK, permanently moved to the warmer climate of Southern Spain, buying houses on the sea coasts. That turned out to be an additional incentive for all business sectors and especially for the local tourist and real estate industry.
Marbella property prices have risen steadily with an increase of 15-20% over the last few years. Marbella, originally a beautiful small village, has developed into a modern and cosmopolitan city offering an interesting and diversified lifestyle.
Despite the world economic situation the demand for property in Marbella and on the Costa del Sol is continually increasing and remains greater than the supply. New developments are completely sold before completion and often sold from the plans.
Due to all expert expectations, the future of the property market on the Costa del Sol appears solid for both, buyers and sellers. An analysis performed by the Advanced Management Services Group had prognosticated that more than 800.000 Europeans will purchase homes on the Spanish coast and Islands until the year of 2010. This will provide a more than sufficient demand to keep the property industry healthy for many years to come.
However, the real estate market is more cautious at today’s price levels than in the past and sellers of second hand properties become more realistic with respect to the offering price of their properties. These are both healthy indicators of a return to a more stable rate of growth than in the past.