In a significant boost for the Spanish real estate market, the latest Housing Price Index statistics are once again giving us positive signs. In the figures for the second quarter of 2019, the upward trend continues, recording a second consecutive period of growth in property prices. So what does this mean for Marbella and the rest of the Costa del Sol, with the type of luxury homes and urbanisations offered by estate agents such as Engel & Völkers?
In Spain as a whole, the Housing Price Index, or IPV, gives prices as rising 5.3% year-on-year, in new building (7.2%) and second-hand (5%), continuing the trend of prices that have increased steadily since 2014 – good news for investors in real estate. In the recent past, rises have been higher in sought-after areas such as Madrid, Barcelona and the Balearic Islands, but things are changing.
Madrid, no doubt boosted by being the country's capital, is holding its own, with amounts rising up to 6.5% per year, although it's still 3% slower than in previous quarters. However, Barcelona and the Balearics are no longer in the top five growth regions, whereas Engel & Völkers is pleased to report that Andalusia now has a growth rate of 5.6%, comparing well with Murcia (5.6%) and Aragón (6.7%).
What does this mean for the continuing recovery of the luxury housing market? The trend continues upwards, with many regions having now returned to within three quarters of what was their market value before the crash of 2008. The sales market for the whole of the province of Andalusia, which affects transactions in Marbella itself, is now just 14% below its maximum.
This optimistic outlook looks likely to improve even more, and offers some hope for the future in regions that are not experiencing growth at present. Purchasers nowadays are also extending their searches inland from the coast in hope of a better deal, or a more tranquil and private setting - good news indeed for the Costa del Sol, and its numerous urbanizations and exclusive communities that extend to the foothills of the Sierra Blanca.
Information and analysis is obtained from notaries for these regular updates of the Housing Price Index, which includes all national transactions for the previous quarter. These trends are then examined by agents in the field, enabling them to understand and act on the current situation, and to decide strategy for the near future. The statistics help them to pass on positive and reassuring messages to any buyers that are worried about the financial and political outlook.
Local experts like Engel & Völkers can then offer wise and informed advice to investors in luxury real estate, and second-home buyers, in Marbella and the rest of the Costa del Sol. With the market improving all the time, now is the best time to buy, and data in the IPV quarterly reports can help to convince clients of that.